Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

London pre-open: Stocks seen up after solid US session

(Sharecast News) - London stocks were set to rise at the open on Tuesday following solid gains on Wall Street. The FTSE 100 was called to open 18 points higher at 7,712.

CMC Markets analyst Michael Hewson said: "US markets performed better than they did on Friday in the wake of a decent payrolls report and lacklustre ISM services survey for December, with tech outperforming.

"A decent performance from the Nasdaq 100, helped drive sentiment after Nvidia announced a significant improvement in chip design with extra components which would allow the better use of AI, sending the shares up to fresh record highs.

"The move higher was helped by weakness in US treasury yields which slipped further away from their peaks of last week in anticipation of this week's US inflation numbers, after New York Fed 1 year inflation expectations fell to 3.01% in December, from 3.36%.

"The strong US finish seen last night looks set to ripple out into today's European open with a solid start expected."

On home shores, industry data showed that retailers ended 2023 on the back foot despite a modest uptick in demand in the week leading up to Christmas.

According to the latest BRC-KPMG Retail Sales Monitor, UK total sales increased by just 1.7% in the five weeks to 30 December, compared to a 6.9% rise a year previously.

The increase was below the three-month average of 2.3%, and the 12-month average of 3.6%.

December is the most important month of the year for many retailers, as consumers splash out on homewares, presents and festive food.

Helen Dickinson, chief executive of the British Retail Consortium, said there had been a "slight" uptick in the week leading up to Christmas.

But she added: "The festive period failed to make amends for a challenging year of sluggish retail sales growth, as weak consumer confidence continue to hold back spending.

"The post-Christmas sales were unsuccessful in enticing spend in areas such as furniture and homewares, with households remaining cautious about making larger purchases.

"2024 looks to be another challenging year for retailers and their customers, and spending will continue to be constrained by high living costs."

In corporate news, B&M European Value Retail reiterated its full-year guidance as it posted a 5% jump in third-quarter sales.

The discount retailer said it still expects group adjusted EBITDA of between £620m and £630m for FY24, up from £573m a year earlier.

GSK said it was buying Aiolos, a clinical-stage biopharmaceutical company focused on treatment of respiratory and inflammatory conditions, for a $1bn (£780m) upfront payment and up to $400m in milestone payments.

The deal provides GSK with access to Aiolos' AIO-001, a drug ready to enter phase II clinical development for the treatment of adult patients with asthma, with potential for additional indications including chronic rhinosinusitis with nasal polyps.

Infrastructure services group Hill & Smith said it had bought the business and assets of New Jersey-based Capital Steel for $6.25m (£5m), on a debt and cash free basis.

Capital Steel, located in Trenton, is led by Robert Hickman who will stay with the company. It supplies structural steel products and services principally into the electrical transmission and distribution market in New York, New Jersey and Pennsylvania.

Under the terms of the deal a further $1.2m is payable conditional on Capital Steel's achievement of financial performance targets in the two years post-acquisition.

Share this article

Related Sharecast Articles

London open: Stocks rally after GDP data, ahead of US earnings
(Sharecast News) - London stocks rose in early trade on Friday as the latest GDP data suggested the UK recession had ended and as investors eyed the start of US earnings season.
Europe open: Stocks jump early as investors digest ECB comments
(Sharecast News) - European stocks rose strongly on Friday as investors continued to digest comments from the European Central Bank, which indicated that a rate cut would be on the cards in the coming months.
London pre-open: Stocks seen up as investors mull GDP data
(Sharecast News) - London stocks were set to rise at the open on Friday as investors mulled the latest UK GDP data and eyed the start of US earnings season.
US close: Mixed session as traders digest PPI numbers
(Sharecast News) - Wall Street stocks turned a mostly positive performance on Thursday following the release of yet another key inflation report.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.