London pre-open: Stocks seen muted ahead of Fed minutes
London stocks were set for a muted open on Wednesday as investors eye the release of the minutes from the latest Federal Reserve meeting.
The FTSE 100 was called to open around five points higher at 7,106.
Naeem Aslam, chief market analyst at Ava Trade, said: "European and US futures are trading almost flat as investors believe that the pace of economic growth has slowed both in the Europe and in the US. Generally speaking, investors are picking up the momentum where they left off things yesterday.
"Traders have started to wonder whether economic growth is nearing its peak, and if so, whether a correction in financial markets is due in the coming months. Furthermore, the combination of inflationary fears, concerns about higher taxes, pressures on profit margins, and the inevitable Fed tapering is likely to weigh on stock markets.
"Investors should keep in mind that the Fed’s latest meeting minutes are set to be released today. These minutes would provide hints of potential changes in the monetary policy in the short term. Having said that, the minutes are expected to stay dovish as inflation remains under control and the labour market grows at a sustainable pace."
In corporate news, housebuilder Redrow said it expected 2022 revenues to exceed £2bn driven by a strong order book and completion of a private rental sector project in London.
The company forecast turnover of around £1.94bn, up from £1.34bn last year as the Covid-19 pandemic battered the economy, but lower than 2019’s £2.11bn.
Fellow housebuilder Vistry expressed confidence in meeting consensus market expectations for FY21 as it said the first half of the year was "significantly" ahead of its expectations amid positive customer demand.
In the six months to 30 June, the housebuilding segment saw completions rise to 3,126 from 1,235 in the same period a year ago and is on track to deliver around 6,500 units in the year, versus 4,652 in 2020.