London pre-open: Stocks seen up as investors eye Fed minutes

(Sharecast News) - London stocks were set to rise at the open on Wednesday following positive US and Asian sessions, as investors eye the latest minutes from the Federal Reserve. The FTSE 100 was called to open 14 points higher at 7,466.

CMC Markets analyst Michael Hewson said: "As we look ahead to today's price action and a holiday shortened US trading week, the main focus is set to be on today's Fed minutes, as well as the latest November flash PMIs.

"A lot of water has flowed underneath the bridge since the Federal Reserve hiked rates as expected a few weeks ago by 75bps.

"The initial reaction to the statement leant into a narrative that the central bank was aware that lags in monetary policy might require a slower pace of hikes going forward.

"The markets liked the sound of this until we got to the press conference and the Q&A with Powell got under way."

On the UK macro front, the S&P Global/CIPS manufacturing and services PMIs for November are due at 0930 GMT.

In corporate news, industrial thread maker Coats reported a rise in revenues and held full-year guidance, despite strengthening forex headwinds.

The company said revenue grew 9% in the four months to October 31. Coats added that foreign exchange headwinds were greater than expected at the half year, with a 3-4% full year adjusted operating profit headwind increasing to 5% based on latest rates.

Elsewhere, drinks maker Britvic posted a rise in full-year profit and revenue, hailing growth in both the retail and hospitality channels, which benefited from good weather over the summer and no lockdown restrictions.

In the year to 30 September, adjusted earnings before interest and tax rose 16% to £206m on revenue of £1.6bn. up 15.5% on the same period a year earlier. Statutory pre-tax profit increased to £175.1m from £134.6m.