London pre-open: Stocks seen steady ahead of Autumn Statement

(Sharecast News) - London stocks were set for a steady start on Wednesday as investors eyed the Autumn Statement. The FTSE 100 was called to open unchanged at 7,482.

Chancellor Jeremey Hunt is due to deliver his statement at around 1230 GMT, after Prime Minister's Questions.

Danske Bank said: "There has been speculation of whether tax cuts will be announced amongst other changes to income taxes, inheritance tax and/or national insurance. The measures presented will try to help the Conservative party following poor performance in the polls with election year coming up.

"According to the latest Politico poll of voting intention from 17 November the Conservatives stand at 27% while the Labour party has pulled ahead at 45%. However, with the 'mini'-budget scandal still fresh in mind, the chancellor will be wary to incorporate anything which will not ensure and signal debt sustainability over the forecast horizon. Overall, we do not expect this to be a market mover event and by extension for GBP."

Investors will also be digesting the latest FOMC minutes released overnight.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The minutes from the Federal Reserve's latest monetary policy meeting showed that the Fed members agreed to 'proceed carefully' with their future rate decisions.

"Carefully doesn't mean that the Fed is done tightening, it means that it will 'proceed carefully' in the light of the economic data and the market conditions to decide whether it should hike, pause, or cut the interest rates. Note that 'most' members 'continued to see upside risks to inflation'."

In corporate news, home improvement retail conglomerate Kingfisher cut its profit guidance for the second time owing to continued market weakness in France.

The company, which owns B&Q and Screwfix in the UK along with a host of other DIY brands across Europe, said adjusted pre-tax profit for the year ending January 2024 will now come in at around £560m, compared with £758m the year before. In September, the company had slashed its guidance from £634m to £590m.

Sage Group reported strong financial results for the year ended 30 September, with underlying recurring revenue increasing 12% to £2.1bn, driven by Sage Business Cloud growth of 25%.

Underlying operating profit grew 18%, and EBITDA increased 16%. The firm also announced a proposed final dividend increase of 5% and a share buyback programme of up to £350m.