London pre-open: Stocks seen up ahead of US inflation data

(Sharecast News) - London stocks were set to rise at the open on Thursday, taking their cue from an upbeat session on Wall Street, as investors eye US inflation data. The FTSE 100 was called to open 20 points higher at 7,745.

CMC Markets analyst Michael Hewson said: "Optimism over today's US inflation numbers has helped drive a positive start to 2023 for both European and US markets so far this year, with the Nasdaq 100 closing higher for the fourth day in a row.

"Sentiment in Europe has also been helped by the recent milder weather which has fuelled optimism that the start of 2023 might offer some respite from further increases in energy prices, and this optimism looks set to continue today with another positive open.

"The way US markets have been behaving over the past few days today's US CPI numbers are merely the next waypoint to a pivot sometime later this year, as the disconnect between what the Fed would like the markets to think, and what the market is pricing continues to grow ever wider."

The US consumer price index for December is due at 1330 GMT, along with initial jobless claims.

In corporate news, Tesco reiterated full-year profit guidance after the supermarket chain posted strong Christmas sales.

The grocer, the UK's largest by market share, said like-for-like sales excluding fuel in the UK and Ireland jumped by 7.8% in the six weeks to 7 January and by 7.2% in the UK. Across the 19 weeks to 7 January - which includes the third quarter - group sales rose 6.4%.

British Gas owner Centrica lifted earnings guidance again as volumes remained strong amid surging energy prices for consumers.

In an extremely brief trading statement, the company said in now expected full year adjusted earnings per share of above 30p compared with a previous estimate of between 15.1p and 26p provided on November 10.