London pre-open: Stocks seen higher amid US debt ceiling hopes
London stocks were set to gain at the open on Thursday following heavy losses in the previous session as worries about rising gas prices ease and amid hopes for a deal on the US debt ceiling.
The FTSE 100 was called to open 60 points higher at 7,056.
Naeem Aslam, chief market analyst at Ava Trade, said: "US futures and European futures are up on the back of the news that the Biden administration offered a suspension of the debt limit, which had been causing volatility in equity markets over the past few weeks.
"Furthermore, sentiment was generally upbeat as Russia offered to assist in supplementing the highly sought-after gas for European regions. This helpline comes at a time when regions are expecting and experiencing power outages, which are highly likely to suppress manufacturing activity and add to already rising consumer prices.
"Stock traders will be looking at today's jobless claims data to gain a better understanding of the labour market's health ahead of the Bureau of Labor Statistics' big payrolls report tomorrow."
The jobless claims figures are due at 1330 BST.
In corporate news, Royal Dutch Shell said it expected third-quarter cash flow to be "significantly" impacted by surging gas and electricity prices.
The company added that it would take a $400m hit to earnings from Hurricane Ida which hit the Gulf of Mexico in August.
Elsewhere, paper and packaging group Mondi reported a jump in third-quarter earnings as it benefitted from higher prices and strong demand.
Third-quarter underlying earnings before interest, tax, depreciation and amortisation rose 27% from the same period a year ago to €388m.