London pre-open: Stocks seen down after China GDP; UK retail sales in focus

18th Oct 2024 07:37

(Sharecast News) - London stocks were set to fall at the open on Friday after data showed that economic growth in China slowed, and as investors mulled better-than-expected UK retail sales figures.

The FTSE 100 was called to open down around 25 points.

Data released earlier by the National Bureau of Statistics showed that China's GDP grew 4.6% in the third quarter, down from 4.7% growth in the second quarter, but above economists' expectations for growth of 4.5%.

On home shores, meanwhile, figures from the Office for National Statistics showed that retail sales rose 0.3% in September, down from 1% growth in August but ahead of expectations for a 0.3% decline.

ONS senior statistician Hannah Finselbach said: "Retail sales grew in September as tech stores reported a notable rise in sales.

"These were only partially offset by a poor month for supermarkets, where retailers said bad weather and households continuing to cut back on luxury food items hit sales.

"Looking at the broader picture retail sales increased across the third quarter as a whole, with growth seen from all main shop types."

In corporate news, British American Tobacco announced that it is nearing a potential settlement regarding outstanding tobacco litigation in Canada after a five-year-long legal process involving its subsidiary Imperial Tobacco Canada Limited (ITCAN).

Back in 2019, ITCAN obtained creditor protection under the Canadian Companies' Creditors Arrangement Act or CCAA, and has been negotiating a possible settlement in a confidential court supervised mediation process.

BAT said on Friday that the mediator and monitor are now planning for "compromise and arrangement", which has been filed in the Ontario Superior Court of Justice.

Elsewhere, media group Future said that chief executive Jon Steinberg plans to step down from the board later next year to relocate back to the US with his family.

Steinberg's notice period is 12 months and the board will now launch a search for his successor, it said.