London pre-open: Stocks seen up after Wall Street gains

(Sharecast News) - London stocks were set to rise at the open on Tuesday following strong gains on Wall Street. The FTSE 100 was called to open 20 points higher at 7,804.

CMC Markets analyst Michael Hewson said: "While US markets surged higher yesterday it is notable that today's European market open is likely to be a much more tepid affair, suggesting perhaps that investors in Europe don't share the same enthusiasm about the economic outlook, despite the reopening of the Chinese economy, which may help to provide a demand boost."

Investors will be mulling over the latest data from the Office for National Statistics, which showed that government borrowing hit a fresh high in December, mostly due to the household energy support scheme and high debt interest costs.

Borrowing came in at £27.4bn, up £16.7bn on December 2021.

In corporate news, Primark owner Associated British Foods posted a 20% rise in sales during the Christmas period as consumers continued to hunt for bargains amid the cost-of-living crisis.

The company, which also has agriculture, sugar and food ingredients operations, said revenue in the 16 weeks to January 7 rose to £6.7bn, with Primark sales up 18% to £3.1bn. Group full-year expectations remain unchanged.

Elsewhere, Saga reiterated its guidance for half-year profits as sales in Cruise and Travel continued to recover from the pandemic.

Nonetheless, chief executive officer Euan Sutherland described conditions in the UK motor insurance market as still "challenging", adding that there had been "some pressure" on the company's underwriting business.