London pre-open: Stocks seen muted after Fed minutes

(Sharecast News) - London stocks were set for a muted open on Thursday as investors digested the latest minutes from the US Federal Reserve. The FTSE 100 was called to open three points lower at 7,512.

CMC Markets analyst Michael Hewson said: "Last night's Fed minutes showed that officials on the FOMC were concerned that there was a risk they might overtighten in their attempts to convince markets they were serious about keeping a lid on inflation.

"That said, there was a general consensus that rates might need to stay restrictive for some time to keep prices in check given a lack of confidence that inflation was likely to improve in the short term.

"There was an acknowledgement that the pace of rate rises might need to slow at some point, however this more or less goes without saying.

"The key takeaway from these minutes would appear to show that there is little inclination on the part of anyone on the FOMC to even look at the possibility of rate cuts, and chime with more recent comments from Fed officials which suggest that we could see at least another 1.5% in rate rises by year end, which would push the Fed Funds rate at 3.75-4% by year end."

In corporate news, Helios Towers backed its guidance for the year and posted a jump in first-half earnings as it hailed strong organic tenancy growth.

In the six months to 30 June, adjusted EBITDA rose 19% to $136.1m, with tenancies up 20% at 20,549.

Building and landscaping materials company Marshalls held full-year guidance as it posted interim profits, but noted that the tough economic backdrop would hit consumer confidence.

The company said adjusted core earnings rose 14% to £64.2m in the six months to June 30. It expects full-year numbers to be in line with expectations as building products and its new Marley acquisition offset weaker trading in landscaping, which is exposed to discretionary spending.