London pre-open: Stocks to gain ahead of Budget

(Sharecast News) - London stocks were set to rise at the open on Wednesday following a positive session on Wall Street, as investors eyed the long-awaited Budget. The FTSE 100 was called to open around 25 points higher.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "There have been plenty of leaks about where Rachel Reeves will squeeze out £30bn to get the numbers right and keep both markets and households happy. Ultimately, no one will be fully satisfied.

"The good news is that stress in gilt markets has been contained over the past few days. The bad news is that yields are near the levels reached during the Liz Truss mini-budget crisis three years ago, and Reeves has the smallest fiscal headroom on record - giving her zero margin for error.

"After today's Budget, we'll have a clearer view on whether the measures will be enough to keep gilt markets tidy and whether they are deflationary enough to convince the Bank of England to cut rates in December - which I think they will be. If so, current levels look appetizing for GBP sellers."

In corporate news, Pets at Home announced it is taking "action at pace" to address its disappointing retail performance after interim profits at the pet shop and veterinary chain slumped by a third.

Group underlying profit before tax totalled £36.2m over the six months to 9 October, down 33.5% on last year, with group revenues rising just 0.7% to £1.06bn.

The vet division saw a 6.7% improvement in sales to £375.9m, while the larger retail arm saw turnover slip 2.3% to £679.9m.

Quality assurance specialist Intertek said it had bought US-based Professional Testing Laboratory, which provides testing services for the flooring industry, for an undisclosed sum.

Intertek said the purchase was "highly complementary" to its TQA business in North America and would unlock strong commercial synergy opportunities, such as expanding PTL's services to Intertek's existing clients, including major retailers.

Drugmaker AstraZeneca said that its Imfinzi asset has been approved in the US for use alongside standard FLOT chemotherapy in the treatment of adult patients with resectable, early‑stage and locally advanced gastric and gastroesophageal junction cancers.

AstraZeneca said the regimen covers neoadjuvant Imfinzi with chemotherapy ahead of surgery, followed by adjuvant Imfinzi with chemotherapy and then Imfinzi monotherapy.