London pre-open: Stocks seen muted as UK inflation dips

(Sharecast News) - London stocks were set for a muted open on Wednesday as investors mulled the latest UK inflation figures and looked ahead to the release of US retail sales. The FTSE 100 was called to open three points lower at 7,950.

Data out earlier from the Office for National Statistics showed that the annual rate of consumer price inflation fell to 10.1.% in January from 10.5% in December as fuel price inflation declined. Analysts had been expecting 10.3%.

The figures showed that fuel price inflation dropped to 7.7% in January from 11.5% the month before.

Meanwhile, core CPI came in at 5.8%, down from 6.3% in December.

Capital Economics said: "Overall, the message for the Bank of England from today's inflation release was clear: disinflationary pressures are building and broadening. This suggests that the end of the Bank of England's tightening cycle just got a bit closer."

Still to come on the macro front, US retail sales for January are due at 1330 GMT.

In corporate news, Barclays Bank said annual profits fell 14%, with provisions for debt impairments increasing as the economy worsened.

The bank posted a pre-tax profit of £7bn in 2022, down from £8.2bn a year earlier and missing estimates of £7.2bn. Credit impairment charges were £1.22bn against a net release of £653m, reflecting "macroeconomic deterioration and a gradual increase in delinquencies".

It also announced a £500m share buyback and lifted the full-year dividend to 7.25p a share from 6p.

Anglo-Swiss mining giant Glencore reported adjusted EBITDA of $34.1bn (£28.19bn) in its 2022 preliminary results, up 60% year-on-year.

The FTSE 100 company said net income pre-significant items was up 107% at $18.9bn, while post-significant items its net income attributable to equity holders was ahead 248% at $17.3bn.

It also announced shareholder returns of $7.1bn, or 56 US cents per share, comprising a proposed $5.1bn base distribution, an additional $0.5bn cash distribution, and a $1.5bn share buyback programme.

Hargreaves Lansdown posted strong growth on both its top and bottom lines at the first half-year stage, despite the impact from "challenging" external conditions and low investor confidence on asset values and stockbroking volumes.

For the six months to 31 December, revenues rose by 20% to £350.0m, for a 31% jump in profit before tax to £197.6m. That was despite a 10% drop in total assets under administration to £127.1bn and a 30% decline in net new business to £1.6bn.

The number of active clients on the other hand rose by 31,000 over the half to 1.768m, versus a 48,000 person increase during the comparable year earlier period. The investment services platform bumped up its interim payout by 3.6% to 12.7p.