London pre-open: Stocks to surge after Wall Street gains

London stocks were set to jump at the open on Thursday following strong gains on Wall Street and the release of encouraging UK house price data.

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

Figures released earlier showed that house prices sparked for the first time in nearly two years in August, boosted by declining mortgage rates and improving confidence in the market.

According to the latest UK Residential Market Survey from the Royal Institution of Chartered Surveyors, the house prices net balance was 1, a significant improvement on July’s -18 and the first time prices have moved into positive territory since October 2022.

In addition, a balance of 14 respondents predicted prices would continue to rise over the next three months.

A balance is the proportion of respondents reporting a rise in prices minus those reporting a fall.

The number of people looking to buy homes also increased in August, the survey showed, with a balance of 15, compared to 4 in July. New property listings ticked up to 7 from 3.

RICS called it a "positive shift" in the UK housing market.

Simon Rubinsohn, RICS chief economist, said: "The latest survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates."

However, he also sounded a note caution: "Anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done, with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check.

"Affordability remains an issue in the sales market, even with somewhat cheaper finance now available."

In corporate news, GSK announced positive results from a phase two trial of its mRNA-based seasonal flu vaccine, showing improved immune responses against A and B strains in both younger and older adults compared to the standard of care.

The FTSE 100 pharmaceuticals firm said the vaccine demonstrated strong antibody levels and an acceptable safety profile across all tested formulations. Based on the findings, GSK said it now planned to advance the vaccine programme to phase three clinical trials.

Renishaw reported record revenue of £691.3m for the year ended 30 June - a 0.4% increase from the prior year, although adjusted profit before tax fell 13% to £122.6m due to currency impacts and increased employee pay, including severance costs, while statutory profit before tax was £122.6m, down from £145.1m.

The FTSE 250 firm said it maintained a strong balance sheet, invested in capital expansion, and saw notable revenue growth in its analytical instruments and medical devices sectors, particularly in spectroscopy and neurology products.