London pre-open: Stocks set for slight gains, euro area periphery and US inflation in focus

Stocks in London are set for small gains at the start of trading on the last day of the month, as investors wait on key consumer credit figures for the month of April.

The top flight index is seen rising by 20 points from Wednesday's closing level of 7,689.57.

After the economy nearly stalled over the first three months of the year, and with the domestic spotlight very much on the consumer (and all things Brexit), investors are keen for more details on how consumers are holding up.

Indeed, before the opening bell consultancy GfK reported that its gauge of UK consumer confidence edged higher in May, rising by two points to -7 (consensus: -8).

Nevertheless, and as Joe Staton, client strategy director at GfK said: "With UK retail sales falling at their sharpest rate since the mid-90s, tough trading conditions for Britain's hard-pressed retail sector continue to take their toll. Shoppers are still not showing signs of a willingness to splash-the-cash. Will this self-imposed austerity remain the hallmark of pre-Brexit Britain in the run-up to March 2019 and beyond?"

In parallel, mortgage lender Nationwide's latest house price data revealed a slowdown in the rate of home price gains from a 2.6% clip for the year to April to 2.4% in May.

That was well beneath the 3.0% rise that economists had penciled in.

For later in the day, the focus will be on the inflation gauges contained in the monthly US personal income and spending report for April, with economists anticipating a dip in the 'core' price index.

Markets will also be keeping tabs on the parliamentary debate on Thursday in Madrid, ahead of the increasingly likely no-confidence vote against Spanish Prime Minister, Mariano Rajoy, expected for the following day.

Indeed, it may trigger the PM stepping down and set the stage for early elections in a bid to maintain the country's hard won financial stability.

Chemicals producer Johnson Matthey reported a 31% fall in annual profits due to restructuring and legal charges, though underlying profits were flat. The FTSE 100 group raised the dividend 7% as directors expressed confidence in prospects, including development of its eLNO next-generation battery material.

Greeting cards, dressings and gifts retailer Card Factory reported first quarter group sales growth of 3.0% on Thursday, with like-for-like sales down 0.4% against what the board described as strong comparatives and a tough retail environment. The FTSE 250 firm said it continued its store roll out in the three months to 30 April, with 10 net new stores opened, keeping it on track for its target of 50 openings for the full year.

Card Factory said it saw "strong" cash generation in the period with a reduction in net debt since year-end, with the board's expectations for the full year remaining unchanged as investors gathered for the annual general meeting.

Transport operator First Group has announced a 1.2% drop in its full-year adjusted pre-tax profits to £197m at constant currencies, despite a 14.0% jump in revenues to £6.398bn, triggering the exit of chief Tim O'Toole.