London pre-open: Stocks seen lower after downbeat US session

London stocks were set for a weaker open on Wednesday following a downbeat session in the US, as investors digest comments from a number of Fed officials in the previous session.

The FTSE 100 was expected to open 19 points lower at 7,415.

CMC Markets analyst David Madden said: "Updates from Federal Reserve members such as Janet Yellen, Patrick Harker and Stanley Fischer gave traders a lot to absorb. The Fed Chair, Ms Yellen believes we will not see a repeat of the 2008 financial crisis in our lifetime, as the regulation brought in after the crisis should prevent it from happening again.

"Ms Yellen feels the Fed should continue on its path of monetary tightening, but it will be gradual and predictable. Mr Harker foresees one more interest rate hike from the US central bank this year, even though he thinks inflation will taper off towards the end of 2017. Mr Fisher thinks the high stock market valuations reflect the higher risk appetite of investors."

Market participants will also be mulling over the latest figures from Nationwide, which showed house prices in the UK rebounded in June. Prices were up 1.1% on the month after falling 0.2% in May, with the year-on-year rate of growth coming in at 3.1%, well above consensus expectations for a 1.8% rise.

In corporate news, international distribution and outsourcing group Bunzl said revenue for the half year was expected to have increased by 7% at constant exchange rates due to the improved underlying growth of between 3% and 4% and a similar impact from acquisitions.

The company also today announced that it has purchased three further businesses in Spain and Canada for an undisclosed sum. It added that it expected to make further acquisitions this year.

Electronics retail group Dixons Carphone released its preliminary results for the 12 months to 29 April , reporting group like-for-like revenue as growing 4%, with statutory revenue up 9%.

The FTSE 250 firm claimed “strong” profit performance, with headline profit before tax of £501m, up 10%, and headline basic earnings per share rising to 33.8p from 30.2p.

Its board proposed a final dividend of 7.75p, compared to 6.50p last year, taking the total dividends for the year to 11.25p - up 15% year-on-year.