London pre-open: FTSE 100 to top 8,100 early on

(Sharecast News) - UK stocks are expected hit more record highs on Friday as investors continued to digest another round of corporate earnings ahead of some crucial economic data from the US later on. The FTSE 100 is on track to notch its fourth record close of the week, and is being called to open around 0.7% higher than Thursday's close of 8,078.86, having gained 3.3% in the past eight trading sessions.

Wall Street stocks finished sharply lower on Thursday after US GDP data revealed that, while economic growth slowed sharply in the first quarter, price pressures picked up with the so-called core price deflator nearly double the rate of the preceding two quarters.

Friday will see the release of March's personal consumption expenditures (PCE) index - the Federal Reserve's preferred measure of inflation - due out at 1330 BST, which is expected to show annual inflation rising to 2.6% from 2.5% in February. The core PCE index however is forecast to slow to 2.6% from 2.8%.

"The fear is to see a higher inflation print, of course, which would further batter the Fed cut expectations. But the 'good' news is, it looked like yesterday's price action already embedded today's core PCE print. Therefore, bad news are - at least - partially priced in," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

In equity news, Anglo American has rejected an "opportunistic" £31bn bid from rival miner BHP, saying it significantly undervalued the company. "The BHP proposal is opportunistic and fails to value Anglo American's prospects, while significantly diluting the relative value upside participation of Anglo American's shareholders relative to BHP's shareholders," Anglo said in a statement. "The proposed structure is also highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders."

NatWest posted a less-than-expected 27% fall in first-quarter earnings, with pre-tax operating profits falling to £1.3bn from £1.8bn a year earlier. Analysts were forecasting a figure closer to £1.2bn. "NatWest Group has delivered a strong set of results for the first quarter - with an operating profit of £1.3 billion - as we remain focused on the priorities we set out in February, which will help us shape the future of this bank," said chief executive Paul Thwaite.

GCP Infrastructure Investments announced the disposal of its interest in loan notes secured against Blackcraig Wind Farm at a 6.4% premium to the project's valuation on Friday, generating £31m in net cash proceeds. The FTSE 250 company said the wind farm in Dumfries and Galloway, Scotland, had been operational since May 2018, and benefitted from renewable obligation certificate subsidy support. It said the disposal aligned with the its capital allocation policy, aiming to reduce leverage, decrease equity exposure, and return capital to shareholders, with a target of releasing £150m from disposals or refinancings by the end of 2024.

Pearson said that its first-quarter performance was in line with its expectations. Underlying sales excluding Online Programme Management and Strategic Review were ahead by 3% during the period. Chief executive officer Omar Abbosh said that the year had started well and was unfolding as anticipated. The educational publisher and services group also said that it was on track to achieve its 2024 guidance. As at 24 April the company said that it had executed £88m of its previously announced £200m buyback extension.