London pre-open: Stocks seen down ahead of US inflation data

(Sharecast News) - London stocks were set to fall at the open on Wednesday following a downbeat session on Wall Street and as investors eyed the latest US inflation reading. The FTSE 100 was called to open down around 30 points.

The US consumer price index for November is due at 1330 GMT.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Interest rate speculation in the United States is set to heighten when a CPI snapshot of inflation is released later, with the signs are that prices have become more stubborn.

"Although the consumer price index data, due out later, is not the Federal Reserve's preferred measure of inflation, it still has influence. If as expected, the headline rate creeps up a little, by 0.1% on the month, it is likely to increase bets of a rate cut next week. Markets are already pricing in a near 85% probability that the Fed will plump for another 0.25% reduction."

In corporate news, British American Tobacco confirmed it remained on track to meet its 2024 financial guidance, driven by second-half acceleration from investments in US commercial actions, new category innovations, and inventory adjustments.

The FTSE 100 company reported strong performance in 'New Categories', including improved profitability in heated products and modern oral categories, despite challenges from "illicit" vapour markets in the US and Canada.

It said it was committed to sustainable shareholder returns through cash generation, progressive dividends, and share buybacks, and aimed to return to mid-term revenue and profit growth targets by 2026.

Endeavour Mining said it would conduct a definitive feasibility study on its Assafou-Dibibango gold project in Côte d'Ivoire after preliminary assessment met strategic targets and confirmed its potential to be a tier one asset.

Ian Cockerill, CEO, commented said the first study had defined a "large, low-cost and long mine life project, capable of producing 330koz a year over the first 10 years, while remaining firmly in the lowest cost quartile".