London pre-open: Stocks seen up as investors mull inflation data
London stocks were set to rise at the open on Wednesday as investors mull the latest UK inflation figures.
The FTSE 100 was called to open 10 points higher at 7,227.
CMC Markets analyst Michael Hewson said: "After the pullbacks seen on Monday, we managed a rather tepid rebound for European stocks yesterday, as caution about the economic outlook continued to temper sentiment.
"There was no such caution amongst US investors with markets there closing higher for the fifth day in a row, and the S&P500 back above the 4,500 level, as company earnings continued to beat expectations."
Figures released earlier by the Office for National Statistics showed that consumer price inflation unexpectedly dipped to 3.1% in September from 3.2% in August. However, it remains above the Bank of England’s target of 2%.
ONS Head of Prices Mike Hardie said: "Annual inflation fell back a little in September due to the unwinding effect of last year's 'Eat Out to Help Out,' which was a factor in pushing up the rate in August.
"However, this was partially offset by most other categories, including price rises for furniture and household goods and food prices falling more slowly than this time last year.
"The costs of goods produced by factories rose again, with metals and machinery showing a notable price rise.
"Road freight costs for UK businesses also continued to rise across the summer."
In corporate news, cybersecurity firm Avast reported a rise in third-quarter revenues and reaffirmed growth guidance driven by its core direct-to-consumer business.
Revenue of $232.7m was up by 5.6% on an organic basis and 3.0% at actual exchange rates for the three months to September 30. Adjusted EBITDA increased 0.8% to $127.0m. Avast reaffirmed its full-year outlook for revenue to be at the upper end of 6-8% growth, and a broadly flat adjusted EBITDA margin percentage.