London pre-open: Stocks to tumble after heavy US losses
London stocks were set to slump at the open on Friday following heavy losses on Wall Street, as investors mull the latest UK GDP data.
The FTSE 100 was called to open down around 115 points.
Data out earlier from the Office of National Statistics showed that the UK economy returned to growth in January.
GDP grew 0.3% on the month following a 0.5% contraction in December, coming in ahead of consensus expectations for 0.1% growth.
ONS director of economic statistics, Darren Morgan, said: "The economy partially bounced back from the large fall seen in December. Across the last three months as a whole and, indeed over the last 12 months, the economy has, though, showed zero growth.
"The main drivers of January's growth were the return of children to classrooms, following unusually high absences in the run-up to Christmas, the Premier League clubs returned to a full schedule after the end of the World Cup and private health providers also had a strong month.”
In corporate news, transport operator FirstGroup lifted annual guidance as passenger traffic on its buses and trains continued to recover from Covid pandemic levels.
The company said bus passenger volumes have increased to 83% of 2020 equivalent levels, with commercial and concessionary volumes at 87% and 75% respectively.
FirstGroup cited the £2 bus fare cap scheme introduced in England in January, and recently extended to the end of June 2023, and the Scottish government’s funding for free bus travel for all under-22s that has been in place since January 2022.
First Bus has also benefited from increased recruitment of drivers largely due to a number of initiatives introduced across the business, with more drivers completing their training and lower rates of attrition.
"Our open access operations Lumo and Hull Trains, which are the only segment of the First Rail division where the Group takes full passenger revenue risk, have experienced stronger than anticipated passenger demand throughout H2 2023. The First Rail division has also benefited from the settlement of one-off claims relating to prior reporting periods," the company said.