London pre-open: Stocks to rebound after heavy sell-off

UK stocks are expected to rebound on Thursday after a massive sell-off the previous session on the back of concerns about global growth and plunging commodity prices.

City sources predict the FTSE 100 will open 57 points higher than Wednesday’s close of 6,388.46.

The index dropped 2.4% the previous session as copper prices fell to their lowest in almost six years after the World Bank slashed its growth forecasts for the global economy.

“Europe looks set for a much more positive open on Thursday, as a rebound in oil prices over the last couple of days provides some reprieve for energy stocks and other sectors continue to be supported by expectations that the European Central Bank will announce its own version of quantitative easing this time next week,” said analyst Craig Erlam from Alpari.

Stocks to watch

Tullow Oil said write-offs and impairment charges for 2014 would total billions of dollars after gross profits more than halved last year to $0.6bn due to the collapse in crude prices. It expects to write down $1.6bn of assets, take a $0.6bn impairment charge and recognise a $0.5bn loss on disposals.

Although its Primark clothing retail division recovered strongly after a slow autumn, Associated British Foods warned that full-year earnings would be hit by a large profit reduction at its sugar business and the strength of sterling. Sales at Primark were 15% ahead of last year at constant currency driven by increased retail selling space and very high sales densities in stores opened during the last year, with exceptional trading from the stores opened in France.

Organic revenue for the three months to 31 December was flat at information services group Experian. In the period, total revenue from continuing activities was down 1%, at constant exchange rates growth was 2%, due to the acquisition of Passport Health Communications and to strong currency headwinds, the company said.