London pre-open: Stocks seen touch higher as oil prices steady
London stocks were set for a marginally firmer open on Thursday as oil prices steadied.
The FTSE 100 was expected to open up around seven points at 7,454.
Oil prices were regaining some composure, with West Texas Intermediate and Brent crude down 0.2% to $42.46 a barrel and $44.72, respectively, after falling to their lowest level in nearly a year on Wednesday.
CMC Markets analyst Michael Hewson said: "The declines seen in the past few weeks really shouldn’t have been too much of a surprise to OPEC given the capacity of US shale producers to vacate the space left open for them. That, and a significant increase in output from Libya and Nigeria, both of whom are exempt from the quota system, and it is clear that OPEC underestimated their own importance, when it came to global oil output.
"The decline in prices hasn’t been helped by concerns that demand might be slowing in Asia, meaning the prospect that inventory levels are likely to remain elevated for longer."
Meanwhile, the pound was a touch weaker against the euro and the dollar, having risen in the previous session after the Bank of England's chief economist Andy Haldane said he might vote for a rate hike in the second half of the year, given that a late policy action could require a steeper rate increase path in the future.
In corporate news, Saga, the provider of products for the over-50s, said its insurance and travels business had enjoyed a "good" first quarter as it begins a major transition to a new business model.
Ahead of its annual shareholder meeting, the FTSE 250 company said the insurance and travel businesses "continued their good start to the year" during the period from 1 February to 21 June, despite citing the backdrop of changing political and economic environment.
Barratt Developments announced that Jessica White was joining the board of the company as an executive director and chief financial officer with immediate effect.
The housebuilder said White, currently Barratt's group financial controller, has “extensive experience” in the housebuilding sector, having joined Wilson Bowden as a corporate accountant in 2005.
On the macroeconomic calendar, the CBI industrial trends survey is at 1100 BST.