London pre-open: Stocks to edge higher; Sainsbury's-Asda merger blocked
London stocks looked set to rise at the open on Thursday following losses in the previous session, with sentiment likely to be underpinned by solid earnings overnight form the likes of Microsoft and Facebook in the US.
The FTSE 100 was called to open 11 points higher at 7,482.
London Capital Group analyst Jasper Lawler said: "After the close, earnings from the closely watched tech sector were encouraging, although investors are nervous that strong corporate data is not enough. Economic statistics across the globe also need to show more signs of life for the current rally to be sustained. European bourses are pointing to a stronger start after the opening bell."
On the UK data front, the Confederation of British Industry's industrial trends survey is at 1100 BST. It’s expected to show a reading of 3 for April, which would be a slight increase from the March reading of 1.
In corporate news, the Competition and Markets Authority has blocked Sainsbury's proposed merger with Asda.
Chair of the inquiry group, Stuart McIntosh, said: "It’s our responsibility to protect the millions of people who shop at Sainsbury’s and Asda every week. Following our in-depth investigation, we have found this deal would lead to increased prices, reduced quality and choice of products, or a poorer shopping experience for all of their UK shoppers.
"We have concluded that there is no effective way of addressing our concerns, other than to block the merger.
Acacia Mining said first quarter gold production fell 13% year on year to 104,899 ounces, but still expected to meet full year guidance of 500,000 to 550,000 ounces.
Revenue fell 12% to of $138m year on year, with the lower sales base further impacted by a lower average realised gold price.
EBITDA slumped 72% to $24m mainly due to lower revenue and the impact of a $45m gain on the sale of a non-core royalty in the first quarter of 2018.
Wood Group has been awarded a new contract by Evonik to deliver engineering, procurement and construction management services for its new polyamide 12 production complex, to be built at the Marl Chemical Park in Germany.
The company described polyamide 12 is a high-performance polymer for special applications across a number of end markets including the automotive industry, oil and gas pipelines and 3D printing. It said the new facility would supplement the existing polyamide 12 production plant, without disrupting existing production.