London pre-open: Stocks seen down on weak US cues

(Sharecast News) - London stocks were set to fall at the open on Tuesday following a downbeat session on Wall Street. The FTSE 100 was called to open down around 50 points.

Earlier, the Reserve Bank of Australia held rates steady but raised hopes that there could be a cut on the way after policy makers said they had gained "some confidence" inflation was heading back to target.

In a widely expected decision, the cash rate was left at 4.35%. The RBA's rate-setting board said "some of the upside risks to inflation appear to have eased" and ditched a longstanding line that it would not rule anything in or out on policy.

Investors will also be mulling the latest data out of China, which showed that exports grew 6.7% in November, slowing from 12.7% the month before. Meanwhile, imports fell 3.9% following a 2.3% decline in October.

"This points to economic strain amid looming US tariffs under incoming President Trump, highlighting the need for stronger domestic stimulus measures," said Danske Bank. "More clarity on this may emerge following yesterday's Politburo meeting and the upcoming CEWC meeting."

In corporate news, Games Workshop said it had reached a final deal with Amazon to adapt its Warhammer 40,000 universe into films and television series, together with associated merchandising rights after agreeing creative guidelines.

Under the terms of the agreement, Games Workshop also granted an option for Amazon to license equivalent rights in the Warhammer Fantasy universe following the release of any initial Warhammer 40,000 production. It added that guidance for the 2024/25 full year remained unchanged.

International equipment rental group Ashtead announced that it is planning to move to a primary listing in the US, where its management team, operational headquarters and vast majority of operations are already based.

The news came as the company warned that full-year profit would be lower than previously expected.

FirstGroup announced its entry into the London bus market as it agreed to acquire the French state-owned RATP Dev Transit London, an operator with a 12% market share, for £90m.

The FTSE 250 passenger transport operator said the purchase, financed through cash reserves and assumed leases, would include RATP London's 10 depots, 1,000-strong fleet and 90 TfL route contracts, with projected revenues growing to between £300m and £350m annually by 2030. Subject to French government and TfL approvals, the deal was expected to close in the first half of 2025.