London pre-open: Stocks seen lower after Powell comments

(Sharecast News) - London stocks were set to fall at the open on Thursday following heavy losses on Wall Street after Federal Reserve chair Jerome Powell warned that Trump's tariffs could cause a spike in inflation. The FTSE 100 was called to open around 30 points lower

In a speech on Wednesday at the Economic Club of Chicago, Powell said that Trump's tariff regime was "significantly larger than anticipated".

"The same is likely to be true of the economic effects, which will include higher inflation and slower growth," he said.

"We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension."

Looking ahead to the rest of the day, investors will be eyeing the latest policy announcement from the European Central Bank, which is widely expected to announce a 25 basis points rate cut.

In corporate news, Sainsbury's reported a 4.2% rise in full-year sales excluding fuel to £26.6bn, with strong growth in its core grocery business and improved online performance, although Argos sales declined 2.7%.

The grocery giant said retail underlying operating profit rose 7.2% to £1.04bn, while statutory profit after tax surged 77% to £242m, despite significant restructuring charges.

It said it had completed a £200m share buyback, and announced plans for at least another £200m in 2025-2026, alongside a £250m special dividend funded by bank disposal proceeds.

GSK announced that the CDC's Advisory Committee on Immunization Practices (ACIP) in the US has recommended its newly-approved Penmenvy vaccine as an alternative for adolescents needing protection against meningococcal serogroups A, B, C, W, and Y, potentially simplifying dosing and improving coverage.

Penmenvy, approved by the Food and Drug Administration in February, combines components of GSK's existing Bexsero and Menveo vaccines into a single dose for individuals aged 10 to 25.

Separately, ACIP also voted to recommend GSK's Arexvy RSV vaccine for adults aged 50 to 59 at increased risk, expanding its previous guidance and addressing a population estimated to experience 42,000 RSV-related hospitalisations annually in the US.