London pre-open: Stocks seen up on positive US cues

London stocks were set to rise on Thursday following positive US and Asian sessions.

The FTSE 100 was called to open 20 points higher at 8,018, having breached the 8,000 mark for the first time a day earlier.

CMC Markets analyst Michael Hewson said: "As we look ahead to today’s European session, we look set for a positive European open, and another record high for the FTSE100, with the focus shifting to today’s US PPI numbers for January and a confirmation that supply chain and factory gate costs are also easing sharply.

"This seems more likely given that freight costs have fallen back and are continuing to do so, and energy costs have also come down. Final demand PPI is expected to fall from 6.2% in December to 5.4%, while core PPI is expected to drop from 5.5% to 4.9%.

"Weekly jobless claims are expected to rise modestly to 200k from 196k."

In corporate news, Standard Chartered announced a new $1bn share buyback as annual profits rose by almost a third on higher global interest rates but still missed estimates.

The Asia, Africa and Middle East-focused bank reported pre-tax profit of $4.3bn for 2022, up 28% from a year earlier and below the $4.73bn average of company-compiled analyst forecasts.

It also took a higher-than-expected $838m bad debt impairment, up $575m, as surging inflation and a global economic slowdown in markets hit borrowers. The provision included $582m for expected bad loans in China’s troubled real estate market.

StanChart upgraded performance forecasts, saying it now expected to achieve a return on tangible equity of 10% this year and 11% in 2024. It had previously targeted 10% for 2024.

Elsewhere, British Gas owner Centrica reported a jump in full-year profits after energy prices surged last year.

Profits more than tripled to £3.3bn in 2022 from £948m a year earlier.