London pre-open: Stocks to recover as investors eye US retail sales

(Sharecast News) - London stocks were set to rise at the open on Thursday following heavy losses a day earlier, as investors eye the latest US retail sales data. The FTSE 100 was called to open 33 points higher at 7,310, having slumped 1.5% on Wednesday as markets continued to be rattled by the hotter-than-expected US inflation print earlier in the week.

CMC Markets analyst Michael Hewson said: "It still seems unlikely that the Fed will go by more than 75bps at this point despite the collective freakout of the past couple of days, with the positive finish in the US last night expected to see European markets open slightly higher later this morning.

"Today's US retail sales numbers could reinforce this hawkish narrative if we get another strong number.

"The resilience of the US consumer in the face of shrinking disposable incomes has been fairly notable this year, despite high food and energy prices which appear to have had little effect on the US consumer's willingness to go out and spend money.

"US retail sales have been positive every single month this year, apart from a modest -0.1 fall in May. If higher prices are deterring consumer spending it's not immediately obvious in the numbers we've seen so far this year, although we have started to see some signs of slowing."

The US retail sales figures for August are due at 1330 BST.

In corporate news, oil and gas giant Shell revealed on that chief executive Ben van Beurden will step down from the role at the end of 2022 following a 39-year career with the group.

Shell said van Beurden will be succeeded by Wael Sawan on 1 January but will remain with the group until 30 June, acting as an advisor to the board, in order to ensure a smooth transition.

Low-cost carrier Wizz Air has reached an agreement with Airbus to purchase a further 102 A321 aircraft, the bulk of which will be delivered between 2025 and 2027.

Wizz Air exercised its purchase rights in relation to 75 Airbus A321neo aircraft and 27 Airbus A321XLR aircraft, with delivery dates of the purchase option aircraft subject to its agreement with Airbus and the approval of shareholders.