London pre-open: FTSE 100 to breach 9,000 for the first time

(Sharecast News) - London's top-flight index was set to breach the 9,000 mark for the first time on Tuesday after closing at a record high a day earlier. The FTSE 100 was called to open around 20 points higher, having ended Monday's session at 8,998.06.

On the macro front, investors will be looking to the US consumer price index for June at 1230 BST.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Both headline and core inflation are expected to accelerate from 0.1% to 0.3% MoM in June, driven by tariff-related pressures on cars, toys, furniture, and other exposed goods. Recent downside surprises in inflation were largely due to companies offloading existing stockpiles - built up ahead of tariff implementation.

"But those buffers are shrinking, and new imports will inevitably show up in prices. If inflation doesn't rise, it will mean companies are absorbing the costs - again, someone will pay. Whether it's the American consumer or the foreign exporter depends on product-level price sensitivity.

"So, something has to give but when and where remains the big unknown. It's worth watching the economic data, the earnings, and global yields closely."

On the corporate front, meanwhile, banks are due to kick off earnings season in the US, with JPMorgan, Citigroup and Wells Fargo slated to report on Tuesday.

"Even though the consensus expects a decent US earnings season, the widening gap between investor optimism and economic reality increases the risk of a sharp reversal. The more investors ignore troubling signals, the higher the chance of a painful correction," said Ozkardeskaya.

On home shores, industry data showed that retail sales jumped in June, fuelled by demand for summer foods and electric fans as shoppers tried to beat the heat.

According to the latest data from the British Retail Consortium and KPMG, UK total retail sales rose 3.1% year-on-year last month, compared to June 2024's 0.2% slip.

Within that, food sales jumped 4.1%, while non-food sales - which fell 1.9% a year earlier - rose 2.2%.

The BRC said sales of electric fans and of sports and leisure equipment did especially well, boosted by the hot weather and start of key summer sporting events such as Wimbledon.

The hike in food sales was partially attributed to the recent rise in grocery inflation, which has been rising steadily through 2025.

Helen Dickinson, chief executive of the BRC, said: "Retail sales heated up in June, with both food and non-food performing well. The soaring temperatures increased sales of electric fans.

"Food sales remained strong, though this was in part driven by food inflation."

Looking forward and she sounded a note of caution, however: "The outlook is not all bright and sunny. Retailers are watching [the] government closely for details of the upcoming business rates reform. If it includes shops within the new higher rates threshold, many retailers will be forced to rethink investment plans."

Sarah Bradbury, chief executive of industry body IGD, commenting on the food and drink sector, said: "Escalating global tension and economic pressures left shoppers feeling uncertain in the year ahead. Notably, the number of shoppers expecting food prices to get much more expensive rose to 20% from 14%, reflecting renewed inflation concerns.

"However, the arrival of new summer ranges and improved weather presents retailers with opportunities to tap into more consumer occasions."

In corporate news, Barratt Redrow insisted it remained on track to meet full-year targets, despite consumer uncertainty and still-high mortgage rates weighing on demand.

Updating on trading for the year to 29 June, the blue chip housebuilder - which was formed at the end of last year, when Barratt Developments acquired Redrow in a £2.5bn deal - said it had been a "solid performance".

Total home completions were 16,565, compared to 14,004 at Redrow or 17,972 on an aggregated basis.

David Thomas, chief executive, acknowledged that there had been fewer international and investor completions than expected in its London businesses.

Discount retailer B&M said that it had delivered a "positive" like-for-like trading performance in the three months ended 28 June, with revenues improving in both its UK and French operations.

Group revenues were up 4.4% at £1.4bn, with UK revenue growing 4.7% to £1.13bn and French revenues improving 7.6% to £136.0m.

Close Brothers said it has reached a deal to sell Close Brewery Rentals to MML Capital for an undisclosed sum as it moves to simplify its portfolio.

Established in 2007, CBRL provides rental and maintenance services for brewery containers such as kegs and casks in the UK.