London pre-open: Stocks seen lower ahead of US jobless claims, GDP

London stocks were set to fall at the open on Thursday as investors eye the release of US jobless claims and GDP data and the start of the Jackson Hole symposium.

The FTSE 100 was called to open 25 points lower at 7,125.

CMC Markets analyst Michael Hewson said: "As we look towards today’s European open, we look set for a slightly softer start with Asia markets seeing a slightly softer feel to the trading day with Chinese stocks in particular slipping back.

"It’s an important day for US economic data, both current and rear-view mirror, especially so given the start of this year’s Jackson Hole symposium later today.

"Starting with weekly jobless claims with one eye on next week’s payrolls report, these are expected to remain steady at 350k, while continuing claims are expected to fall further to 2.76m, from 2.82m.

"We also have the latest iteration of US Q2 GDP. The rebound in the US economy from last year’s slump of -31.4% fall in GDP, has been decent, with four consecutive quarters of expansion, although the extent of the rebound has been slightly less than was anticipated back in April.

"In Q1 the economy expanded by 6.4%, driven largely by two big stimulus interventions by the US government at the end of last year, as well as in March. The spill over effects of this were expected to accelerate into the Q2 numbers, especially given that the various fiscal interventions are still ongoing and due to expire in September."

In corporate news, building materials supplier CRH lifted its dividend as interim core earnings rose by a quarter and the company said it expected second half profits to be ahead of a record prior year.

Earnings for the six months to June 30 came in at $2bn, up 25% on a better-than-expected 15% increase in sales to $14bn. The dividend rose 4.5% to 23 cents a share.

AstraZeneca said that positive high-level results from the ‘FoCus’ phase 3 trial in Wilson disease showed ‘ALXN1840’ met its primary endpoint, with a statistically significant improvement in daily mean copper mobilisation from tissues, demonstrating superiority compared with standard-of-care treatments.

At the same time, the drugmaker said ‘Forxiga’, or dapagliflozin, a sodium-glucose cotransporter 2 inhibitor, has been approved in Japan for the treatment of chronic kidney disease in adults with and without type-2 diabetes.