London pre-open: Stocks seen up on positive US cues

(Sharecast News) - London stocks were set to rise at the open on Tuesday following a positive session on Wall Street. The FTSE 100 was called to open 16 points higher at 7,420.

CMC Markets analyst Michael Hewson said: "US markets also finished the day strongly, building on the gains that we saw last week with the Dow and S&P500 closing close to the highs of the last few days. This positive finish has seen Asia markets edge higher and also looks set to translate into a positive European open this morning.

"With the Federal Reserve rate meeting due to start later today, markets have become increasingly divided as to what the FOMC may well do when it comes to interest rates tomorrow, with opinions split between another 25bps hike, a pause, and a 25bps rate cut."

In corporate news, B&Q and Screwfix owner Kingfisher posted a drop in full-year profit as sales dipped.

In the year to the end of January 2023, adjusted pre-tax profit fell 20.2% to £758m, with sales down 0.9% at £13.1bn. Kingfisher said its performance reflected strong prior year comparatives linked to high demand for home improvement products.

Educational publisher Pearson said it was selling its Online Learning Services (POLS) operation to private equity firm Regent for a deferred sum as part of a strategic review of its business.

The company said it would receive 27.5% of POLS' positive adjusted core earnings annually for six years from completion, excluding loss-making periods.

It will also receive a further contingent payment equal to 27.5% of the proceeds received by Regent in relation to any "monetisation event" of POLS.