London pre-open: Stocks seen lower as investors eye Sunak's mini budget
(Sharecast News) - London stocks were set for a weaker open on Wednesday amid growing concerns about a rise in coronavirus cases, as investors eyed Chancellor Rishi Sunak's mini budget.
The FTSE 100 was called to open 34 points lower at 6,155.
CMC Markets analyst David Madden said: "Equity markets in Asia are mixed as stocks in China and Hong Kong are showing modest gains, while the Nikkei 225 is in the red. The WHO said it wouldn't be surprised if the death rate started to rise as Covid-19 cases increased in June.
"Rishi Sunak, the Chancellor of the Exchequer, will be in focus today as he is tipped to unveil various schemes that are aimed at aiding the economy. Some of the programmes have already been announced. Last week, Prime Minister Johnson revealed a £5bn infrastructure plan. There is talk about more funds being allocated to schools too.
"It is believed that £3bn will be earmarked for a green investment package - which will include energy efficiency schemes and the creation of jobs. The housebuilding sector could be in for a boost as there is talk the stamp duty threshold will be raised from £125,000 to £500,000. Changes might be introduced to the furlough scheme and VAT might be alerted too."
In corporate news, bus and rail operator FirstGroup pulled guidance and swung to a full-year loss as coronavirus lockdowns in the UK and US hit operations.
The company reported an operating loss of £152.7m compared with a £9.8m profit a year ago.
"There are material uncertainties as to how rapidly demand will increase, the rate at which fiscal support tapers and the duration of social distancing rules, as well as the timing of North American schools reopening. Therefore it is currently not possible to provide guidance for the financial year to 31 March 2021," the company said.
Segro said it had collected 93% of £37m in UK rent due for the third quarter after deferring payments on £9m.
The company has received 98% of £88m rent due for the second quarter in the UK and continental Europe after adjusting for £13m that was rearranged.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.