London pre-open: Stocks seen muted ahead of US PPI
London stocks were set for a muted open on Thursday as investors eye the latest US producer price index.
The FTSE 100 was called to open unchanged at 7,507.
CMC Markets analyst Michael Hewson said: "European markets finished at their highest level in two months yesterday after US CPI surprised to the downside, and oil flows in the southern part of the Druzhba pipeline restarted after being closed down at the end of last week.
"US markets also underwent a strong session with the Nasdaq 100 leading the way higher, after US CPI fell to 8.5% in July, while core prices remained steady at 5.9%, a trend that has continued with strong gains in Asia markets, which look set to translate into a higher European open."
On the macroeconomic front, investors will eye the US producer price index for July and initial jobless claims, both due at 1330 BST.
In corporate news, miner Antofagasta reported lower interim profits due to a volatile copper price, a drought in Chile and concentrate pipeline problems at its Los Pelambres operation.
Core earnings fell 47.5% to $1.24bn on lower revenue and operating costs that increased by 6.9% mainly due to higher input prices. Revenue was down by a third to $2.53bn due to lower copper and by-product sales volumes and lower realised copper prices.
Investment manager M&G said that improved fund flows in the six months ended 30 June had underpinned a "resilient" operational and financial performance.
M&G said interim operating capital generation was up 40% year-on-year at £433.0m, while its shareholder solvency II rating remained "very strong" at 214% despite total capital generation tumbling from £869.0m to £24.0m as a result of increasing yields and falling equity markets. Adjusted pre-tax operating profits fell from £327.0m to £182.0m, impacted by current market conditions.