London pre-open: Stocks seen flat as investors mull political developments in France, Japan

(Sharecast News) - London stocks were set for a flat start on Tuesday as investors continued to mull the latest political developments in France and Japan. The FTSE 100 was called to open unchanged at around 9,479.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "In France, political chaos is worsening by the hour. The new Prime Minister, Sébastien Lecornu, resigned after just 14 hours in office, as the cabinet announced by Macron was largely unchanged from the one that just fell - immediately triggering talk of a no-confidence vote.

"Lecornu has since accepted Macron's call to hold on for another 48 hours, but there's little light at the end of the French political tunnel. France, as it stands, is barely governable.

"In Japan, the yen remains weak under the new LDP appointee, Sanae Takaichi, who favours loose monetary and fiscal policies and is being compared to both Thatcher and Abe. The Nikkei is consolidating after a 5% rally, while JGB yields hover at multi-decade highs.

"Investors are wondering whether Japan's new PM, Takaichi, can recreate the optimism of Abe's Abenomics era with her pro-growth agenda. But unlike Abe, she faces rising inflation, record-high debt near 216% of GDP, and a central bank that's tightening, not easing. That leaves far less room for bold fiscal or monetary moves. So while Japanese equities may climb further if global sentiment stays buoyant, a true Abenomics-style rally looks unlikely - and rising yields could even trigger repatriation flows that ripple through global markets."

On home shores, latest data from Halifax showed that house prices ticked lower in September, missing forecasts for a slight rise.

House prices decreased by 0.3% in September, compared to a 0.2% uplift in August. Most analysts had been expecting another 0.2% rise.

The average property price now stands at £298,184.

However, Amanda Bryden, head of mortgages at Halifax, said the market remained "broadly" stable.

In corporate news, tobacco giant Imperial Brands said it remained on track to meet full-year guidance, supported by growth across both its tobacco and next-generation product categories.

Imperial Brands expects market share gains in the US, Germany and Australia to broadly offset declines in Spain and the UK, while NGP net revenues were pegged to deliver another year of double-digit growth.

Adjusted operating profits were forecast to grow at a similar rate to last year, in line with guidance, with high-single-digit adjusted earnings per share growth driven by profit expansion and a reduced share count from its ongoing buyback.

Imperial also announced a £1.45bn share buyback for FY26, reaffirming confidence in its capital allocation framework and strategic execution.

Discount retailer B&M said it expects full-year profits to fall by up to 18% after reporting a flat underlying sales performance in the UK in the first half.

Chief executive Tjeerd Jegen, who joined in June, said the company's operational execution has been "weak" and announced the launch of a 'Back to B&M Basics' plan focused on returning the UK business to sustainable like-for-like growth.

"We have already sharpened our price position, and we are moving with pace to refocus our ranges, improve on-shelf availability and bring back excitement to our stores," Jegen said.