London pre-open: Stocks to fall as investors mull China GDP, UK inflation
London stocks were set to fall at the open on Wednesday following downbeat sessions in the US and Asia, as investors mulled the latest China GDP data and UK inflation figures.
The FTSE 100 was called to open around 60 points lower.
Data released earlier by China’s National Statistics Bureau showed that the economy grew 5.4% in the first quarter, beating expectations for 5.2% growth.
The bureau said the economy was "off to a good and steady start" but also cautioned that "the external environment is becoming more complex and severe" and said that domestic demand remained insufficient.
On home shores, data from the Office for National Statistics showed that consumer price inflation rose 2.6% in the year to March, down from 2.8% the month before and coming in below expectations of 2.7%.
ONS chief economist Grant Fitzner said: "Inflation eased again in March, driven by a variety of factors including falling fuel prices and unchanged food costs compared with the price rises we saw this time last year.
"The only significant offset came from the price of clothes, which rose strongly this month, following the unusual decrease in February."
In corporate news, Bunzl lowered its guidance for 2025 after a worse-than-expected start to the year, with profits down "significantly" in the first quarter due to a challenging economic backdrop.
The international distribution and services group said it now expects only a “moderate” increase in revenues at constant exchange rates this year, down from an earlier projection for “robust growth”, while the operating margin is now expected to reduce to 8.0% compared with the initial targets for no change from 8.3% in 2024.
Barratt Redrow reported a stable trading performance for the quarter ended 30 March, with a slight year-on-year increase in its core private reservation rate and a total of 3,717 home completions, keeping it on track to deliver full-year guidance of 16,800 to 17,200 homes.
The housebuilder said the integration of Redrow was progressing well, with office consolidations, systems transitions, and procurement synergies supporting a £100m cost-saving target.
Despite a 10% year-on-year decline in forward sales volumes, the value of the private order book rose 3.3%, supported by modest price inflation and a strong balance sheet with £508m in net cash.