London pre-open: Stocks seen up as investors mull retail sales

(Sharecast News) - London stocks were set to rise at the open on Friday as investors mull the latest UK retail sales data. The FTSE 100 was called to open 16 points higher at 7,362.

Figures released earlier by the Office for National Statistics showed that retail sales bounced back in October, up 0.6% following a 1.5% decline in September. Analysts had been expecting a 0.3% rise.

Darren Morgan, ONS director of economic statistics, said: "Retail sales increased in October, although this is likely a rebound effect after weak sales last month as many retailers closed or operated differently on the extra bank holiday for the Queen's funeral.

"Looking at the broader picture, retail sales continue their downward trend seen since summer 2021 and are below where they were pre-pandemic."

Investors will also be digesting the latest survey from GfK, which showed that UK consumer confidence nudged higher in November.

GfK's Consumer Confidence Index rose 3 points in November to -44, although it remains close to historic lows. In September the index touched -49, the lowest since the survey began in 1974.

Within November's overall print, the personal finance situation index for the next 12 months increased 5 points to -29, while expectations for the economy in the coming year improved 3 points to -58. The Major Purchase Index was also ahead, up 3 points at -38.

But Joe Staton, client strategy director at GfK, said: "This month's fillip is likely to reflect nothing more than a collective sigh of relief as a new prime minster takes charge following the alarming fiscal antics we saw in September.

"This is not the end of the beginning. External factors have changed little and with UK inflation recently hitting a new high, more bad news is inevitable.

"Household budgets remain shrouded in massive uncertainty, with fresh jumps in food prices, energy still uncomfortably expensive, the prospect of new interest rate rises pressurising mortgages and...squeezed real pay."

In corporate news, Bodycote held full-year guidance and said revenues in the four months to October 30 rose by a third due to price increases and energy cost surcharges.

Total group revenue for the period grew by 29% on last year to £258m, or up 22% at constant currency rates. Bodycote introduced energy surcharges at the end of last year with the intention of covering the highly volatile costs of electricity and gas.

Elsewhere, DS Smith said it has appointed Richard Pike, the chief financial officer of waste management company Biffa, as its new group finance director.

Pike, who has been CEO of Biffa for the last four years, will succeed Adrian Marsh, who is due to retire next summer.