London pre-open: Stocks seen up as investors mull GDP

(Sharecast News) - London stocks were set to rise at the open on Monday as investors mull the latest UK GDP data. The FTSE 100 was called to open 29 points higher at 7,380.

CMC Markets analyst Michael Hewson said: "After another choppy week for European markets, a latter week rebound helped to ensure a modest gain, while the FTSE 100 was able to recover some of the losses that had taken place over the previous two weeks.

"Even US markets, which have seen sizeable losses over the last 3 weeks, managed to enjoy a brief respite, reversing the losses of the previous week, shrugging off heightened expectations of another 75bps rate hike by the Federal Reserve when they meet next week.

"This follow through effect has translated into a positive session in Asia and as such we should see a positive European open."

On the macro front, data released earlier by the Office for National Statistics showed the UK economy returned to growth in July, but growth was weaker than expected as industrial production and construction shrank.

GDP rose 0.2% following a 0.6% decline in June, but this was below economists' expectations of 0.5% growth.

In corporate news, government contractor Serco said CEO Rupert Soames would retire in September 2023 and step down both from the board at the end of this December 2022.

He will be succeeded by Mark Irwin, who is currently the CEO of Serco's UK & Europe Division.

Residential property business Grainger said that rents had grown 4.5% year-to-date on a like-for-like basis amid "strong" rental market conditions in the second half of the trading year.

Grainger, which highlighted a record occupancy rate of 98.2%, did noted that despite the "buoyant rental market", it was also "very mindful" of financial challenges facing many individuals, leading it to take a "responsible approach" to rental increases.