London pre-open: Stocks to edge up as investors mull inflation data

The FTSE 100 was called to open 18 points higher at 7,199.

CMC Markets analyst Michael Hewson said: "It’s not been a great week thus far from European markets, although losses have been modest thus far, given the gains we’ve already seen this month.

"US markets, having got off to a positive start on Monday with another record for the S&P500, had a more disappointing day yesterday, finishing sharply lower, after US retail sales missed sharply to the downside.

"This uncertainty about a slowing global recovery may well have prompted a little bit of weakness in the past two days, however Asia markets appear to be shrugging that off after the RBNZ kept rates unchanged instead of raising them in response to the new lockdown imposed in New Zealand.

"Consequently Asia markets have found a bit of a bid and as a result markets here in Europe look set to open higher, despite concerns that increasing outbreaks of the delta variant will stall the economic recovery completely."

Market participants will be mulling the latest figures from the Office for National Statistics, which showed that consumer price inflation fell to 2% in the year to July from 2.5% in June, coming in in line with the Bank of England’s 2% target. Economists had been expecting inflation to come in at 2.3%.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: "Inflation fell back in July across a broad range of goods and services, including clothing, which decreased with summer sales returning after the pandemic hit the sector last year."

In corporate news, interim profits at house builder Persimmon surged on the back of increased demand and government support measures as Covid curbs were eased, the company reported.

Pre-tax profit for the six months to June 30 rose to £480.1m from £292.4m on revenue of £1.84bn compared with £1.19bn a year earlier. The dividend was lifted to 110p a share from 70p.

Forward sales were currently at £2.23bn, including legal completions in the second half so far, up 9% on the pre-pandemic trading year of 2019.