London pre-open: Stocks seen lower; borrowing figures in focus

(Sharecast News) - London stocks were set to fall at the open on Tuesday following an uninspiring Asian session, as investors brace for a busy week of earnings. The FTSE 100 was called to open 22 points lower at 7,890.

On the macro front, figures released earlier by the Office for National Statistics showed that government borrowing continued to rise in March.

Public sector net borrowing came in at £21.5bn, slightly above expectations of £21.3bn and up £16.3bn on March 2022. It also marked the second-highest borrowing figure since monthly records began in 1993.

In corporate news, Primark owner Associated British Foods reported lower interim profits as the clothing retailer and foods group battled inflationary headwinds and lower consumer spending amid the cost-of-living crisis.

The posted adjusted operating profit of £684m, down 3%, for the 24 weeks to March 4. Primark profits fell to £351m, compared with £414m a year earlier.

On a pre-tax basis AB Foods earnings for the period rose 1% at £644m, supported by a 23% rise in profits at its foods and division. The firm expects full-year profits to flat, in line with guidance.

Anglo American reported a 28% increase in copper production in its first-quarter production report on Tuesday, due to the ramp-up of its new Quellaveco copper mine in Peru.

Steelmaking coal production also increased by 59% while iron ore production increased by 15%, driven by improved operational performance at both Kumba and Minas-Rio.

The FTSE 100 firm said rough diamond production remained flat due to the planned completion of Venetia's open pit, while metal in concentrate production from its platinum group metals operations decreased 6% due to unplanned plant maintenance and lower grades at Mogalakwena.