London pre-open: Stocks to edge higher after retail sales

London stocks were set to edge higher on Friday following heavy losses in the previous session, as investors mulled the latest retail sales and borrowing figures.

The FTSE 100 was called to open 13 points higher at 6,026.

Data released earlier by the Office for National Statistics showed retail sales rose above pre-pandemic levels in July. Sales were up 3.6% on the month following a 13.9% surge in June, coming in ahead of expectations for a 2% increase.

ONS deputy national statistician for Economic Statistics, Jonathan Athow, said: "Retail sales have now regained all the ground lost during the height of the coronavirus restrictions as more stores open for trade and online sales remain at historically high levels.

"While still below their pre-pandemic levels, both fuel and clothing sales continued to recover. Meanwhile, food sales fell back from their recent peaks as people started to venture back into pubs and restaurants."

Meanwhile, separate figures from the ONS showed government debt rose above £2trn in July for the first time, coming in at £2.004trn and up £227.6bn compared to the same time last year.

In corporate news, AstraZeneca said it Imfinzi has been approved in Japan for the treatment of patients with extensive-stage small cell lung cancer (ES-SCLC), in combination with etoposide plus a choice of platinum chemotherapy.

The approval by the Japanese Ministry of Health, Labour and Welfare was based on positive results from the Phase III CASPIAN trial, showing Imfinzi plus chemotherapy demonstrated a statistically significant and clinically meaningful improvement in overall survival versus chemotherapy alone, it added.

SCLC is a highly aggressive, fast-growing form of lung cancer that typically recurs and progresses rapidly, despite initial response to chemotherapy.