London pre-open: Stocks seen up after strong Asian gains

26th Sep 2024 07:19

(Sharecast News) - London stocks were set to rise at the open on Thursday following strong gains in Asia.

The FTSE 100 was called to open around 45 points higher.

Naeem Aslam, chief investment officer at Zaye Capital Markets, said: "US and European futures are trading higher as traders and investors pick up the momentum from Asia, where the sentiment has been positive.

"The recent economic measures taken by the central bank in China have given much confidence to traders over in Asia, and this has resulted in strong gains for stock indices such as the CSI - the index has recorded its seventh consecutive day in a row of being in positive territory."

On home shores, a survey showed that consumer confidence fell in September as people waited anxiously for next month's Budget.

According to the British Retail Consortium's latest consumer sentiment monitor - which asks about expectations for the coming three months - concerns about both the economy and personal finances have worsened.

The personal financial situation fell to -6 from 1 in August, while the state of the economy slumped to -21 in September from -8.

Personal spending on retail edged up one point to -8. But personal spending overall was a point lower at 10.

The BRC attributed the shaken consumer confidence to the upcoming Budget, with new chancellor Rachel Reeves due to address Parliament on 30 October.

The government has repeatedly warned of a £22bn "black hole" in the public finances. In August, shortly after taking office, prime minister Kier Starmer said the Budget was going to be "painful".

Helen Dickinson, chief executive of the BRC, said: "Retailers could face a turbulent few months. Negative publicity surrounding the state of the UK's finances appears to have damaged confidence in the economic outlook, particularly among older generations.

"The Budget is a key opportunity to inject some confidence back into the economy, boosting spending and helping to foster much needed investment in businesses."

In corporate news, drinks maker Diageo maintained guidance amid a "challenging" global environment for the industry.

In a brief trading statement ahead of its annual general meeting, chief executive Debra Crew said consumers continued to be "cautious".

Diageo in July reported a drop in full-year organic operating profit as it pointed to a weaker performance in Latin America and the Caribbean

Elsewhere, Halma backed its guidance for the full year as it said further progress was made in the first half in trading conditions "which remain varied across our end markets".