London pre-open: Stocks to edge up in quiet end to the week

(Sharecast News) - London stocks were set to edge up at the open on Friday in a quiet end to the week, with US markets due to close early for the Thanksgiving holiday. The FTSE 100 was called to open around 15 points higher, as investors continue to weigh the impact of Wednesday's Budget.

Michael Brown, senior research strategist at Pepperstone, said: "With yesterday having been Thanksgiving, and most US-based participants away from their desks today as well, I don't have especially much to say this morning.

"As is typically the case, trading conditions were very thin indeed yesterday, with those markets that were open doing absolutely nothing of interest whatsoever throughout the session.

"I guess the most notable market move was some softness in Gilts, with yields having ticked higher by 3-4bp across the curve, though we remain some way off the wides seen in the aftermath of the OBR's shambolic leak on Wednesday morning.

"That said, this pressure on UK debt makes sense, as the Budget continues to be digested, and as participants increasingly notice that almost all of the spending increases in said Budget are front-loaded, while almost all of the tax hikes are back-loaded."

Corporate news was thin on the ground but pub group Mitchells & Butlers said like-for-like sales in the last two months had risen by 3.8% despite uncertainty ahead of the UK government's Budget which was delivered on Wednesday.

The upbeat performance came as the company reported a jump in full-year pre-tax profits to £238m from £199m. Group like-for-like sales in the year to 27 September rose 4.3%.