London pre-open: Stocks seen muted ahead of data slew
London stocks were set for a muted open on Tuesday as traders get back to their desks after the Bank Holiday weekend, with a slew of data releases to come.
The FTSE 100 was called to open just one point higher at 6,971.
On the macro front, UK consumer credit and mortgage approvals are due at 0930 BST, along with Markit’s manufacturing PMI.
Broker Shore Capital said: "The age-old investment adage - ‘Sell in May and go away’ may well be aired again this year as concerns over inflation are voiced but with Step Three of the Roadmap out of Lockdown due on 17 May, the upward force could continue."
ShoreCap noted that US market are still leading the way.
"Both the S&P 500 and Nasdaq continue to trade close to record highs, rising by 5% in April. The S&P 500 has risen by 13% in the year to date, the Nasdaq by 10% and the Dow Jones by 12%. The momentum is being driven by vaccine rollouts, fiscal and monetary policy and strong corporate earnings. This is helping to underpin other major markets."
In corporate news, Mike Ashley’s Fraser Group said it was starting a share buyback of up to £60m to reduce its share capital. The group, which includes Sports Direct, Jack Wills, and House of Fraser, said it would buy up to 10m shares from Tuesday up to the last day before it enters its closed period ahead of full year results.
Elsewhere, AstraZeneca said that Farxiga has been approved in the US for the treatment of chronic kidney disease in patients at risk of progression with and without type-2 diabetes.
AstraZeneca said the approval by the US Food and Drug Administration is "the most significant advancement in the treatment of chronic kidney disease in more than 20 years".