London pre-open: Stocks seen lower amid earnings avalanche

(Sharecast News) - London stocks were set to fall at the open on Thursday following mostly downbeat US and Asian sessions, amid an avalanche of corporate news. The FTSE 100 was called to open 10 points lower at 7,905.

CMC Markets analyst Michael Hewson said: "European markets got off to a broadly negative start to the month yesterday, except for the FTSE100, which managed to finish the session higher, due to a decent performance from the basic resource sector on optimism over the China reopening story.

""US markets similarly got off to a poor start, with a further acceleration in yields helping to push US stocks close to key support levels.

"The catalyst for yesterday's rise in yields was two-fold, an unexpected rise in German CPI to 9.3%, while ISM manufacturing prices paid unexpectedly jumped more than expected in February, thus reinforcing the higher rates for longer narrative that is starting to make investors increasingly nervous.

"One of the main reasons for recent stock market resilience has been a belief that we are close to peak rates, and that soon after we could start to see an easing. The latter part of that is becoming increasingly less likely with both the S&P500 and Nasdaq 100 testing but holding above their respective 200-day SMAs.

"This continued upward pressure on yields, along with continued pressure on these key support levels looks set to see European markets open slightly lower this morning."

In corporate news, Taylor Wimpey warned that completions were set to fall this year, the latest housebuilder to see higher mortgage costs and the cost-of-living crisis knock buyer confidence after a profit warning from Persimmon on Wednesday.

Elsewhere, building materials group CRH posted a jump in full-year earnings as sales grew, underpinned by the company's integrated solutions strategy.

Earnings before interest, tax, depreciation and amortisation rose 13% to $5.6bn, with sales up 12% to $32.7bn.

CRH hailed "resilient" demand and commercial progress in North America and Europe. It said that EBITDA growth was achieved as "good commercial management and further operational efficiencies offset significant cost inflation".

Earnings were also out from Schroders, Beazley, Haleon, Flutter and ITV, among others.