London pre-open: Stocks seen higher as investors eye US GDP
London stocks were set for a firmer open on Friday as investors took some comfort from solid Amazon earnings and looked ahead to the latest US GDP reading.
The FTSE 100 was called to open 19 points higher at 7,682.
London Capital Group analyst Jasper Lawler said: "Cementing the see-saw action in tech stocks across this week, Amazon reported through the roof earnings, double expectations at $5.07 per shares vs exp. $2.57 sending its shares 3% higher in afterhours trading.
"Whilst revenue experienced a slight miss, the phenomenal profits thanks to its high earning cloud business and advertising, sent a wave of relief through the markets after Facebook’s shocker just 24 hours earlier; even Nasdaq futures were looking brighter."
There are no major UK data releases due, but second-quarter US GDP figures are at 1330 BST.
Lawler said a strong GDP figure will support expectations that the Fed will look to raise rates four times across the year. "Whilst there rates hikes are fully priced in, investors remain unsure about the fourth which is only 65% priced in.
"A solid GDP print, boosting rate hike hopes could see the dollar extend gains from the previous session and push towards $95.50. Meanwhile, a surprise to the downside could see the dollar target $93.80."
In UK corporate news, BP said it had agreed to buy BHP’s US shale assets for $10.5bn.
BP said it would pay the $10.5bn in two instalments with $5.25bn paid once the deal is completed and the rest in six cash payments over six months.
BT Group updated the market on its trading for the first quarter to 30 June on Friday, with underlying revenue down 2% as regulated price reductions in Openreach and declines in its enterprise businesses offset growth in the company’s consumer business.
The telecoms giant said adjusted EBITDA was up 1% to £1.8bn, which was primarily driven by stronger handset margins in its consumer business, and restructuring-related cost savings.
Rightmove posted a jump in first half revenue and operating profit as it lifted its interim dividend and aid it was confident of delivering on its full-year expectations.
In the six months to 30 June, revenue was 10% higher at £131.1m, while operating profit rose 12% to £98.2m and the group upped its dividend by 14% to 25p a share.