London pre-open: Stocks seen up on US debt ceiling hopes

(Sharecast News) - London stocks were set to rise at the open on Thursday following an upbeat close on Wall Street amid debt ceiling hopes. The FTSE 100 was called to open 26 points higher at 7,749.

CMC Markets analyst Michael Hewson noted that US markets finished their session strongly higher, "taking their cues from comments from US President Biden expressing confidence that a deal would ultimately be agreed, confidence that was echoed by House Republican leader Kevin McCarthy".

"With yesterday's strong US finish in mind, we look set to carry that momentum into today's European open, although with bank holidays in France and Germany we can probably expect to see another quiet session."

In corporate news, Royal Mail owner International Distributions Services swung to a hefty full-year loss after a bruising year-long battle with unions over pay and conditions.

Royal Mail posted an adjusted operating loss of £419m, compared with a profit of £416m due to industrial action by the Communication Workers Union, lower test kit volumes and a weaker online retail market, the company said.

The group, which includes the GLS international unit, reported an adjusted loss before tax of £110m, against a profit of £707m a year earlier.

Elsewhere, budget airline easyJet reported a narrowing of its first-half losses, driven by increased capacity, load factors and yields now that all travel restrictions have lifted.

In the six months to the end of March, the headline loss before tax narrowed to £411m from £545m in the same period a year earlier.

Chief executive Johan Lundgren said: "EasyJet's optimised network combined with the strong demand seen for flights and holidays, enhanced revenue capabilities and operational resilience, means we enter the summer with confidence."