London pre-open: Stocks to extend rally as Footsie eyes another record

24th Apr 2024 07:23

(Sharecast News) - UK stocks are expected to rise for the sixth straight day on Wednesday, with futures pointing to a third consecutive record for the FTSE 100.

The Footsie is being called to open around 0.6% higher than Tuesday's close of 8,044.81. The index has set record closing highs for the past two trading sessions.

Sentiment was being lifted by strong gains on Wall Street on Tuesday and a big after-hours surge in the share price of Tesla - the first of the Magnificent Seven tech stocks to report their earnings - despite numbers missing analysts' estimates. The stock was up 13% after the closing bell.

"Stocks ripped higher for a second consecutive day on Tuesday, buoyed by robust corporate earnings that helped alleviate fears surrounding [the] higher-for-longer evolving narrative," said Stephen Innes, managing partner at SPI Asset Management.

"A more positive trend emerged, fuelled by robust earnings reports. This uptick reflects investor confidence in the resilience of corporate America amid challenging economic conditions. As companies deliver strong earnings results, investors find renewed optimism about future growth and profitability prospects."

On Wednesday's agenda, markets will have a hold of economic data from across the eurozone to contend with, including the German IFO index, business and consumer confidence in Italy, the ZEW sentiment survey in Switzerland, along with speeches from some European Central Bank members. Over in the US, we'll have MBA mortgage applications and durable goods orders data.

In UK corporate news, Lloyds Bank held annual guidance despite a 28% fall in first-quarter profits due to lower net interest income and higher operating expenses, partially offset by a lower impairment charge. The group's profit before tax for the first three months of 2024 was £1.63bn.

Consumer goods giant Reckitt Benckiser said that it was on track to deliver its full-year revenue and profit targets as it posted a rise in first-quarter like-for-like net sales. In an update for the three months to the end of March, the Dettol and Lysol maker said LFL net revenue grew 1.5%, with a volume decline of 0.5% and price/mix growth of 2%.