London pre-open: Stocks set to fall as investors digest slew of corporate updates
London stocks were set to fall on the open on Thursday, following a slew of Wall Street earnings overnight and ahead of a similarly busy day for corporate updates in the UK.
The FTSE 100 was called to open around 40 points lower.
In the US after the bell, investors heard from Facebook-owner Meta, which posted above-forecast numbers, as well as IBM and Tesla. Ipek Ozkardeskaya, senior analyst at Swissquote, said: “Earnings are coming in stronger than expected, triggering positive knee-jerk reactions. Yet gains are rapidly given back or fail to snowball into broader, lasting enthusiasm.”
In the UK, J Sainsbury kicked off a bumper day of results by posting improved interim sales and profits, as robust grocery volumes helped offset weaker demand for homewares and clothing.
The supermarket giant, which is in the process of selling general retailer Argos, said underlying sales excluding fuel rose 2.6% in the 28 weeks to 12 September, to £14bn, while underlying operating profits were 3.6% stronger at £525m.
Grocery sales sparked 2.9%, at £13.2bn, driven by ongoing volume growth and lower inflation, while general merchandising and clothing sales fell 3.4% at £800m.
The chain also tweaked its full-year guidance for adjusted profits, in light of the sale of Argos – which is due to complete in early 2027 – and the interim performance. Previous guidance of £975m to £1.075bn would be equivalent to £965m to £1.065bn once Argos’s contribution was stripped, it noted, and raised that to £1.025bn and £1.065bn.
Barclays reported a rise in third-quarter profit, as it announced a £500m share buyback.
In the three months to the end of September, pre-tax profit grew 12% to £2.3bn, while earnings per share were 18% higher year-on-year at 12.3p.
The return on tangible equity rose to 11.7% in Q3 from 10.6% in the same period a year earlier, and Barclays said it was on track to deliver a RoTE greater than 12% in 2026.
Chief executive C. S. Venkatakrishnan said: “With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets. We are confident in and committed to the 2028 targets that we laid out earlier in the year.”
Information and analytics firm Relx said trading remained strong through the first nine months of 2026, with underlying revenues up 7% and continued momentum across its higher-value analytics and decision tool businesses. The FTSE 100-listed firm also reaffirmed its full‑year outlook for another year of solid revenues, adjusted operating profits and earnings per share growth.