Less Ads, More Data, More Tools Register for FREE

London pre-open: Stocks seen higher as inflation remains in focus

Thu, 14th Oct 2021 07:36

(Sharecast News) - London stocks were set to rise at the open on Thursday following a mostly positive session on Wall Street.
The FTSE 100 was called to open 35 points higher at 7,176.

CMC Markets analyst Michael Hewson said: "It's still proving to be extremely difficult to define a direction, however due to last night's resilient US performance markets here in Europe look set to open slightly higher, with the FTSE 100 looking to open at its highest levels in over a month.

"Inflation risk remains a clear and present concern after China PPI in September moved above 10% to its highest level in over 25 years at 10.7%, although CPI was more subdued at 0.7%.

"Yesterday's US CPI numbers, which came in more or less in line with expectations, prompted a bit of a selloff in the US dollar, as well as a flattening of the yield curve as US 10-year yields fell back, and an US 2-year yields popped higher.

"With yesterday's Fed minutes now out in the open, the nature of the discussions appears to suggest that tapering will begin before the end of this year, with the only debate as to whether it will start in mid-November, or mid-December. There was some disagreement about how quickly the taper should be implemented, however the most likely outcome would be something along the lines of $5bn a month in mortgage-backed securities and $10bn a month in US treasuries."

In corporate news, private property rental company Grainger reported a rebound in performance in the second half of its fiscal year, with lettings at 94% as Covid restrictions were lifted.

The company, which has a 7,000-home portfolio, said it expected to hit 95% occupancy "shortly", in a trading update for the 12 months to September 30. It also unveiled the purchase of a build-to-rent development scheme in London, on a forward funding basis for £141m.



More News

UPDATE 1-Oil falls to two-week low on U.S. inventory shock, COVID-19 case rise

(Adds comment, charts, updates prices)By Aaron SheldrickTOKYO, Oct 28 (Reuters) - Oil prices slumped to their lowest in two weeks after official figures showed a surprise jump in U.S. inventories of crude, and rising cases of COVID-19 in Europe, R...

Today 06:37

IN BRIEF: Invinity Energy Systems consults after 25% reject pay report

IN BRIEF: Invinity Energy Systems consults after 25% reject pay report

Today 06:25

UPDATE 1-Aker BP raises dividend as Q3 profit jumps on strong oil, gas prices

(Adds quote, detail)OSLO, Oct 28 (Reuters) - Norway's Aker BP said on Thursday it would increase its dividend payout as third-quarter profits soared on the back of strong oil and gas prices.Earnings before interest and tax (EBIT) for July-Septembe...

Today 06:20

UPDATE 1-Sabadell's Q3 net profit more than doubles buoyed by British unit TSB

(Breaks down balance sheet's figures, including TSB)MADRID, Oct 28 (Reuters) - Spain's Banco Sabadell on Thursday said its third-quarter net profit more than doubled from the same period a year ago thanks to a rise in the group's lending income an...

Today 06:18

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.