London pre-open: Stocks to bounce back after heavy losses

6th Aug 2024 07:34

(Sharecast News) - London stocks were set to rebound at the open on Tuesday following a heavy selloff in the previous session amid a global market meltdown.

The FTSE 100 was called to open around 80 points higher, having closed down 2% on Monday.

Stocks tumbled on Monday after the non-farm payrolls report for July released on Friday came in much weaker than expected, fuelling concerns the US Federal Reserve may have made a mistake by not cutting rates last week.

In corporate news, Crowne Plaze, Regent and Holiday Inn owner InterContinental saw its bottom line shrink by 10% in the first half due to the planned reduction of its so-called System Fund surplus, though underlying profits improved by 12% due to solid margin improvements and an acceleration in RevPAR growth in the second quarter.

Operating profit from reportable segments improved to $535m, up from $479m the year before.

Elsewhere, GSK was upbeat after a jury in an Illinois state court found its discontinued Zantac drug not liable for the plaintiff's colorectal cancer.

The FTSE 100 pharmaceuticals giant said the outcome aligned with the scientific consensus that there was no consistent or reliable evidence linking the active ingredient ranitidine to an increased cancer risk.

It said the verdict was supported by 16 epidemiological studies on ranitidine use, and added that it planned to continue vigorously defending itself against similar claims in ongoing litigation.

Abrdn posted a 7% decline in interim net revenues to £667m, but adjusted operating profits edged up 1% to £128m.

The asset manager also swung to a profit before tax of £187m, after £169m of red ink one year before.

Net flows reached £0.8bn, reversing the 2023 outflow of -£5.2bn, albeit thanks to £2.4bn of liquidity net inflows. The interim dividend was kept at 7.3p.