London pre-open: Stocks seen up after positive US session
London stocks were set to rise at the open on Friday following an upbeat session on Wall Street amid optimism a deal will be reached on the US debt ceiling.
The FTSE 100 was called to open 20 points higher at 7,762.
A survey out earlier showed that UK consumer confidence continued to recover in May despite record-high food prices.
GfK’s consumer confidence index printed at -27, up three points from April.
Within that, all individual measures were higher on the month. The index of expectations for personal finances over the coming year ticked up five points from April to -8 in May. The gauge for expectations for personal finances over the past 12 months rose one point to -20.
The index for the general economic situation over the next year came in at -30.0 in May, up from -34.0 a month earlier, while the same index but for the situation over the last 12 months rose one point to -54.0.
The major purchase index edged up four points to -24 and the savings measure was flat on the month in May at 19.0.
Joe Staton, client strategy director at GfK, said: "The cost-of-living crisis has been part of our daily financial reality for a long time, with double-digit inflation and record-high food prices. But despite those pressures, May sees an encouraging three-point uptick in consumer confidence. This is the fourth monthly increase in a row from January’s score of -45.
"While Brits have little control over the general economy, it’s good to see further improvement in how people view their personal finances in the next 12 months with a robust five-point jump to -8. This measure most keenly reflects our hopes and fears for the coming year, and it underpins our ability to spend on goods and services that drive our economy. Of course, the headline score of -27 means we’re still deep in negative territory and a long way from any ‘sunny uplands’.
"However, the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think. But everybody must hold on tight as it could still be a rocky ride out of these tough times."
In corporate news, Smiths Group lifted revenue guidance after a strong third quarter, driven by volume and price growth.
Organic revenue was up 13.4% for the nine months to April 30, leading Smiths to increase 2023 guidance to around 10% organic revenue growth with “moderate” margin improvement.
"The third quarter performance was driven by both good volume and price growth, with strong demand in most of the group's end markets. We continue to invest in working capital to ensure we meet this strong customer demand," the company said.
Elsewhere, Vanquis Banking Group said that chairman Patrick Snowball plans to step down from the board this year.
Snowball, who has been chairman since 2018, will stay on until a successor has been appointed and to support the transition to the group's new chief executive officer, Ian McLaughlin, who starts in July.