London pre-open: Stocks to edge down; US PPI in focus

The FTSE 100 was called to open down around six points.

On the macro front, the US producer price index for October is due for release at 1330 GMT.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The figures are expected to point at an uptick in factory-gate prices in October. The headline PPI is seen rebounding from 1.8% to 2.3% in October, and core PPI from 2.8% to 3%. And don’t forget that there are components in these figures that feed into the Fed’s PCE index.

"Therefore, even if these numbers are in line with expectations, they should be warning that a 25bp cut from the Fed is probably not the right thing to do. I am not saying that the Fed won’t do it. I am just saying that it’s probably not the right thing to do."

In UK corporate news, luxury goods brand Burberry suspended its dividend and launched a strategic review of the business in an “urgent” effort to turnaround its struggling fortunes after slumping to a £80m half-year loss.

The company said “Burberry forward” would focus on “reconnecting our brand with its original purpose and leveraging our strengths...to attract a broad base of luxury customers”.

The loss compares with a £223m profit a year earlier. Revenues plunged 22% to £1.08bn.

Burberry said with the key Christmas period ahead and an uncertain macroeconomic environment it was “too early to determine whether our second-half results will fully offset the first-half adjusted operating loss”.

Fluid technology and thermal solutions group Spirax left its full-year outlook unchanged after increasing organic sales across all three of its businesses in the third quarter despite ongoing macroeconomic challenges.

The company said it continues to expect mid-single digit organic revenue growth in 2024 with an adjusted operating profit margin of 20%, in line with last year when adjusted for currency headwinds.