London pre-open: Stocks to gain on positive US cues

London stocks were set to gain at the open on Friday following a positive session on Wall Street, as better-than-expected jobless claims eased concerns about the US economy.

The FTSE 100 was called to open around 10 points higher.

Stephen Innes, managing partner at SPI Asset Management, said: "With its weekly appearance and moody disposition, the jobless claims series typically doesn't stir the market pot too much. Yet, it remains a pivotal barometer, especially in a market soaked with frantic calls for emergency rate cuts and murmurs that the Fed is playing catch-up with economic realities.

"This week's heightened attention was undoubtedly stoked by last week’s dismal non-farm payroll report, which sent markets spiralling down faster than a rollercoaster drop, flipping the script where suddenly bad news was, indeed, just bad news."

In corporate news, CVC Private equity funds and Nordic Capital XI Delta GP have agreed a deal to purchase Hargreaves Lansdown for 1,140p per share in cash.

That amount will be comprised of 1,110p in cash per share of Hargreaves together with a 30p per share dividend for the year ending on 30 June.

The acquisition price values the firm's share capital at about £5.4bn, for a 54.1% premium to the share price on 11 April, the day before the initial buyout approach.

Housebuilder Bellway said it expected to return to growth in fiscal 2025 if market conditions remain stable, with signs of an upturn in the market after the recent cut in interest rates.

The company said total housing completions fell to 7,654 homes in the year to July 31 from 10,945 a year ago at an overall average selling price of around £308,000 compared with £310,306 in 2023 - both slightly ahead of previous guidance.

Housing revenue came in at £2.35bn, down from £3.4bn and the underlying operating margin is expected to be around 10% against 16.0% last year.