London pre-open: Stocks to gain as investors eye US inflation, ECB

(Sharecast News) - London stocks were set to gain at the open on Thursday after the S&P 500 and Nasdaq notched more record highs, with all eyes on the latest US consumer price inflation reading. The FTSE 100 was called to open around 20 points higher.

The US consumer price index for August is due at 1330 BST. Investors will also be watching out for the latest policy announcement from the European Central Bank, with no change to rates expected.

Kathleen Brooks, research director at XTB, said: "The US CPI is set to rise today, driven by higher gasoline prices and increases in food prices. Coffee prices are expected to surge on the back of US tariffs, and beef prices are also expected to rise. There has been a slow response to tariffs from CPI, which is partly down to inventories: businesses are selling goods that were imported before export restrictions became live.

"Whether or not we see pass through from tariff costs to consumer goods, could depend on demand. If consumer demand remains strong, then retailers may feel more confident in rising prices. However, a lower-than-expected CPI report later today could also be a signal that consumer demand is faltering in the US."

As far as the ECB is concerned, Brooks said the interest rate futures market is pricing in less than one full cut between now and the middle of next year.

"This suggests that 2%, the current ECB interest rate, could be the long term neutral rate for the Eurozone, and we could be at the end of the ECB rate cutting cycle."

On home shores, the latest residential market survey from the Royal Institution of Chartered Surveyors showed that house prices softened in August as economic uncertainty weighed on the market.

The survey showed that agreed sales were also down, alongside a slowdown in new buyer enquiries.

The house price balance fell to -19 from -13 and -7 in July and June respectively, with respondents expecting further falls over the coming quarter.

The new buyer enquiries balance softened for the second month in a row, to -17 from -7, while agreed sales slid to -24 from -17.

There were also fewer fresh listings, with new vendor instructions easing to -3 - the first negative reading since June 2024.

Tarrant Parsons, head of market research and analysis at Rics, said: "With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty.

"Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time."

In corporate news, online ticketing platform Trainline said it expected full-year earnings to be at the upper end of guidance after an 8% jump in interim sales driven by strong traffic in the UK and Europe and also unveiled a £150m share buyback.

The company now expects adjusted core profits to grow at the top end of its previous guidance range of between 6% and 9%. Group net ticket sales increased to £3.2bn, near the top of expectations.

Real estate investor LondonMetric Property revealed that it had acquired £78.5m of triple net leases across five transactions, reflecting a net initial yield of 5.5%, which was expected to increase to 6.3% over five years.

LondonMetric said the nine assets added £4.6m of additional rent per annum and had a weighted average unexpired lease term of 23 years.

Marketing and tech group Brave Bison announced the £6m acquisition of consultancy MTM London, helping it to lift its outlook for the next two years.

Following new customer wins including Primark, EQT, Tottenham Hotspur FC, EA Games and Guinness World Records, and with the anticipated contribution from MTM London, Brave Bison said it expects to "exceed current market forecasts for FY25, and increases expectations for FY26".

The update came as the company reported a 19% increase in first-half revenues and a 6% rise in adjusted EBITDA.