London pre-open: FTSE to rise as politics dominate; GDP in focus

(Sharecast News) - London stocks were set to gain at the open on Thursday as attention remained firmly on UK politics, and as investors mulled the latest UK GDP figures and eyed Trump's meeting with Xi Jinping.

The FTSE 100 was called to open around 32 points higher.

On home shores, health secretary Wes Streeting was reportedly set to resign on Thursday and launch a leadership challenge against Keir Starmer. Ed Miliband and Angela Rayner could also join the fight to become prime minister.

On the macro front, figures from the Office for National Statistics showed the economy grew in the first quarter in line with expectations. GDP increased by 0.6% in January to March, following a revised 0.2% uplift in the fourth quarter.

While all sectors contributed to the uplift, the main driver was services, which grew by 0.8%.

Liz McKeown, director of economic statistics at the ONS, said: "Growth picked up in the first quarter of the year, led by broad-based increases across the services sector.

"Within that wholesale, computer programming, and advertising performed particularly well.

"Production also grew slightly, while construction returned to growth, though only partly reversing weakness at the end of last year."

Chancellor Rachel Reeves said: "Today's figures show the Government has the right economic plan. The choices I have made as Chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran.

"Now is not the time to put our economic stability at risk. To do so would leave families and business worse off. Instead, this Government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future."

In corporate news, Aviva said it was on track to meet full-year targets after a large jump in first-quarter premiums.

Gross written premiums rose 18% to £3.4bn in the period supported by the acquisition of Direct Line and growth in intermediated business, including the addition of the Home partnership with Nationwide, the company said.

National Grid reported another year of solid progress, underpinned by record capital investment and increased regulatory visibility across its UK and US networks.

Underlying earnings per share came in at 78p, up 8% year-on-year at constant currency, with its strong operational performance tempered by recent divestments, higher storm‑related costs, a larger share count and the impact of a FERC order.

Gross revenue from continuing operations, on the other hand, slipped 4% to £17.68bn.

Results from Burberry, Land Securities, 3i Group and Premier Foods, and updates from ITV and Watches of Switzerland were also out.