London pre-open: Stocks seen lower on downbeat US cues

(Sharecast News) - London stocks were set to fall at the open on Friday following a downbeat session on Wall Street, as investors mulled a drop in retail footfall. The FTSE 100 was called to open around 25 points lower.

Danske Bank said: "Equities edged slightly lower yesterday, with defensive sectors outperforming in what was otherwise a calm session.

"We've entered a classic wait-and-see mode ahead of the upcoming US data flow and the reopening of US markets after the holiday. The Q3 earnings season will kick off in earnest next Tuesday, which is likely to re-energise sentiment."

On home shores, data released earlier by the British Retail Consortium showed that weak consumer confidence and uncertainty arising from the upcoming Autumn Budget prompted a steeper drop in footfall across the UK's high streets.

According to the monthly BRC-Sensormatic Footfall Monitor, overall footfall fell by 1.8% year-on-year last month, worse than the 0.4% annual decline posted in August.

Footfall across UK high streets was down 2.5% on last year, following a 1.1% increase the previous month, retail park footfall fell 0.8% after a previous 1.1% decline, while shopping centre traffic slipped 2.0% after no growth in August.

Footfall fell across all nations again in September compared with the year before: -0.5% in Northern Ireland, -1.8% in England, -2.3% in Scotland and -2.5% in Wales.

BRC chief executive Helen Dickinson said speculation about possible tax rises in November's Budget was keeping shoppers away during the month.

"Tube strikes in London, heavy rainfall in the first half of September and Storm Amy towards the end of the month exacerbated the decline," she said.

Dickinson blamed the £5bn in additional employer costs imposed on the retail industry from the last Budget for the lack of investment in local communities and high streets.

"For retailers to invest in shopping destinations that will entice shoppers back, the government imposed cost burdens holding back that investment must be lifted. The upcoming Budget is the moment for the Chancellor to do just that, deliver the Labour manifesto commitment of a meaningful reduction in business rates for the industry and ensure no shop pays more in the process," she said.

In corporate news, recruitment firm Hays said it experienced the typical recovery in post-summer activity in its first quarter, but expects ongoing macroeconomic uncertainty to weigh on its performance over the remainder of the year.

Like-for-like net fees declined by 8% year-on-year over the three months to 30 September, with a 5% decrease in temp and contracting fees met with a 13% drop in the permanent side of the business.

"We expect near term market conditions to remain challenging and, although we have limited forward visibility, we believe this is likely to persist through FY26," the company said.

Fund solutions provider JTC said it has extended possible takeover talks with suitor Warburg Pincus.

The FTSE 250 firm first announced last month it was in talks with the private equity firm, having rebuffed a previous approach.

Under City rules, Warburg had until 1700 BST on Friday to make a firm offer or walk away - a so-called put up or shut up deadline.

However, JTC said discussions remained "ongoing" and it had therefore sought - and been given -approval from the Takeover Panel to extend the deadline.

Building products manufacturer Ibstock reported weaker-than-expected demand in its core construction markets during the third quarter amid a "more uncertain near-term backdrop".

Ibstock said both clay and concrete revenues were impacted, with second-half sales volumes and adjusted underlying earnings now anticipated to match the first half due to softer market conditions.

Full-year net debt was expected to be above previous guidance.