London pre-open: Subdued start expected for UK stocks

UK stocks are expected to experience a quiet start on Wednesday morning, with investors continuing to trade cautiously with markets near record highs.

City sources predict the FTSE 100 will open just a few points lower than Tuesday's close of 7,019.68.

The Footsie had pulled back from the all-time closing high of 7,037.67 set on Monday amid a flurry of key economic data, including inflation figures in both the UK and US.

"After yesterday’s important trading data out of Europe, the UK and the US, today’s session could be a little more subdued," said James Hughes from Etoro.

"Today’s session will be dominated by Germany and the ongoing discussions between Greece and its creditors," he said.

Stocks to watch

United Utilities Group on Wednesday said it expects a modest increase in underlying operating profit for 2014/15, compared with last year, and plans to invest over £850m in regulatory capital investment during the period. The UK utilities giant said revenues are expected be slightly higher than last year, reflecting the regulated price allowance for 2014/15 partly offset by the impact of the previously announced one-off special customer discount of around £20m. United Utilities also reported it has exceeded its 2010-15 regulatory outperformance targets.

Profits at UK housebuilder Bellway jumped by more than a half in the first six months of its financial year, prompting the company to hiked its interim dividend by 56.3% to 25p per share. Pre-tax profit was up 53.1% at £158.9m in the half year ended 31 January.

A first-half trading update from Tui AG confirmed the merged Anglo German travel colossus has sailed serenely past last year's figures and remained confident of delivering strong full year growth. Winter closed out as expected, said joint bosses Friedrich Joussen and Peter Long, and the company is still on track to deliver underlying operating profit growth of 10% to 15% for the full year.

IP Group portfolio company Diurnal has been granted Orphan Drug designation by the US Food and Drug Administration for its lead product Chronocort. The move grants Diurnal seven years of market exclusivity. Chronocort is a modified-release form of hydrocortisone, specifically designed to provide cortisol replacement throughout the day in a manner that mimics the natural circadian rhythm.