London pre-open: Stocks seen steady after record close; US CPI eyed

(Sharecast News) - London stocks were set for a fairly steady open on Friday after closing at a record high in the previous session, with all eyes on the latest US inflation reading. The FTSE 100 was called to open just five points higher.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Finally some data! Economic data remains scarce due to the ongoing US government shutdown, but the Bureau of Labor Statistics decided to publish September CPI figures today to give policymakers and investors some direction ahead of next week's decision.

"Both headline and core inflation are expected to land around 3.1% YoY for September, and some analysts warn CPI could rise toward 3.5% in the coming months amid tariff-driven pressures. That's well above the Fed's 2% target, but markets broadly believe the central bank will tolerate higher inflation to avoid an economic meltdown.

"Even so, inflation remains an issue. Today's numbers are unlikely to be a game-changer if they align with the 3% expectation. A softer print could fuel speculation of a third rate cut in December, boosting risk appetite while dragging US yields and the dollar lower. Conversely, a stronger CPI could trigger a reassessment of dovish expectations and raise questions about whether major indices deserve to keep pushing into uncharted highs."

The US CPI data for September is due at 1330 BST.

On home shores, figures from the Office for National Statistics showed that retail sales jumped in the last quarter, as the fine weather boosted demand for summer clothing.

The quantity of goods bought was estimated to have risen 0.9% in the three months to September, the highest level since summer 2022.

Sales volumes rose by 0.5% in September, following an upwardly-revised 0.6% increase in August.

Analysts had been expecting a 0.2% dip last month.

ONS senior statistician Hannah Finselbach said: "Retail sales rose quite strongly in the latest quarter and were at their highest level since summer 2022. Although food stores saw very little growth, good weather in July and August boosted sales of clothing, while online retailing also did well.

"Retail sales also grew over the month of September, with tech stores seeing a notable rise in sales, while online jewellers reported strong demand for gold."

In corporate news, NatWest raised its income and returns guidance for 2025 following a strong performance in the third quarter, helped by "healthy levels of customer activity".

The lender said it now expects income excluding notable items to be around £16.3bn this year, up from earlier projections of at least £16.0bn, and to achieve a return on tangible equity of greater than 18.0%, up from 16.5%.

Total income excluding notable items rose 15.7% to £4.2bn in the third quarter, with net profits surging 35.1% to £1.68bn.

Drugmaker GSK said that the US Food and Drug Administration had approved its Blenrep asset in combination with bortezomib and dexamethasone for the treatment of adults with relapsed or refractory multiple myeloma.

GSK said the approval covers patients who have received at least two prior lines of therapy, including a proteasome inhibitor and an immunomodulatory agent, and was based on data from the pivotal phase III DREAMM-7 trial.

Exploration and production firm Energean's Israeli subsidiary has signed a transmission agreement with Israel Natural Gas Lines for capacity in the Nitzana pipeline, in line with its strategic focus on long-term value creation.

Energean said the Nitzana pipeline was a new onshore pipeline that will be built from Ramat Hovav to the border with Egypt in the Nitzana area.

The agreed terms were for the supply of up to one billion cubic meters of natural gas per year for a 15-year period, with provisions for extensions and early termination.