London pre-open: Stocks to push higher on positive US cues; inflation data eyed

London stocks were set for a positive open on Wednesday following upbeat sessions in the US and Asia as investors eye the release of key inflation data.

The FTSE 100 was called to open 16 points higher at 7,242.

London Capital Group analyst Jasper Lawler said: "The calmer sentiment in the market as investor concerns fade over military action in Syria and a potential US – Sino trade war, is being played out in the CBOE Volatility Index (VIX) also known as the fear gauge. The VIX which dropped over 8.5% in the previous session is trading below 15 for the first time since mid-March. This points to a calmer picture on the markets after a particularly rough past few months.

"With geopolitical tensions easing, at least for the time being, US earning season has filled the void, impressing investors, even though the bar has been set high. Netflix jumped just shy of 10% after as investors continued to react to better than forecast subscriber numbers, meanwhile UnitedHealth Group was also up 4% after results surprised to the upside."

On the data front, the retail price index, producer price index and consumer price index are all due at 0930 BST.

In corporate news, Hammerson has withdrawn its recommendation for its proposed takeover of Intu Properties, blaming problems in the UK retail market and opposition among some shareholders for its change of heart.

The shopping centre owner agreed in December to buy Intu in an all-share deal that valued Intu at £3.4bn at the time. Since then, several retailers have gone into administration, raising concerns about the market for shopping centres.

Melrose Industries urged all remaining GKN shareholders to accept its takeover offer before midday on Wednesday as it will become unconditional in all respects at 0800 BST on Thursday.

Only those GKN shareholders who have validly accepted the offer by 1200 BST on Wednesday will be able to take part in the initial settlement of consideration shares.

Mediclinic International said it expects profits for the year to be marginally ahead of expectations, thanks to a "significant" second half improvement in its Middle East hospitals.

Management of the company said the Middle East division had reached an "inflection point", which has seen revenue in the second half grow by around 6% compared to last year and around 12% sequentially on the first half, with low double-digit percentage growth expected for the next financial year

BT Group announced on Wednesday that it would bring together its enterprise businesses in the UK and Republic of Ireland to accelerate its transformation, simplify its operating model and strengthen accountabilities.

The FTSE 100 telco said its ‘business and public sector’ and ‘wholesale and ventures’ would be combined to create a new business unit, BT Enterprise. Gerry McQuade, currently CEO of the wholesale and ventures business, has been appointed to bring together and lead the new organisation.