London pre-open: Stocks to nudge lower; consumer confidence dips

25th Oct 2024 07:29

(Sharecast News) - London stocks were set to nudge lower at the open on Friday as investors mulled a decline in consumer confidence and as wariness set in ahead of next week's Budget.

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

A survey released earlier by GfK showed that UK consumer confidence fell slightly in October, with consumers in a "despondent" mood ahead of the Budget.

GfK's consumer confidence index dipped one point to -21, falling back down to the level last seen in March this year.

Neil Bellamy, consumer insights director at GfK, said: "As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation.

"This month's consumer confidence barometer paints a picture of people holding their breath to see what's in store for them on 30th October."

In corporate news, NatWest raised its full-year income forecasts after a strong third quarter, in which profits jumped by 34.6% on last year.

Profit for the three months to 30 September totalled £1.24bn, up from £924m, as total income rose 7.3% to £3.49bn.

The banking group said it now expects to achieve a return on tangible equity above 15%, up one percentage point on previous guidance, while adjusted income should come in at £14.4bn, compared with an earlier forecast of £14bn

FirstGroup announced the acquisition of Lakeside Group - a profitable Shropshire and Cheshire-based company with a fleet of approximately 145 buses and coaches.

The FTSE 250 passenger transport operator said Lakeside, known for school, B2B, and B2C private hire services, generated revenue of £12.5m and EBIT of £2.5m in the year ended March.

It said the acquisition aligned with its strategy to expand its First Bus portfolio, with Lakeside's leadership set to continue under managing director Neal Hall and current owner Gareth Davies.