London pre-open: Stocks to fall as investors mull inflation data
(Sharecast News) - London stocks were set to fall at the open on Wednesday as investors digest the latest UK inflation data.
The FTSE 100 was called to open 20 points lower at 6,085.
Figures released earlier by the Office for National Statistics showed that consumer price inflation fell to 0.2% in August from 1% in July, pushed lower by the Eat out to Help Out scheme.
ONS deputy national statistician for Economic Statistics Jonathan Athow said: "The cost of dining out fell significantly in August thanks to the 'Eat Out to Help Out' scheme and VAT cut, leading to one of the largest falls in the annual inflation rate in recent years.
"For the first time since records began, air fares fell in August as fewer people travelled abroad on holiday. Meanwhile the usual clothing price rises seen at this time of year, as autumn ranges hit the shops, also failed to materialise."
In corporate news, full-year profits at housebuilder Redrow slumped by 66% due to the coronavirus and associated lockdowns although reservations were up in the first 11 weeks of the new fiscal year and it expected to resume dividend payments in 2021.
Pre-tax profit plunged to £140m from £406m in the year to June 28 on revenues down 37% to £1.34bn. The order book rose to £1.4bn from £1.02bn.
Plus500 said it was very confident about its outlook after momentum from the first half continued into the second half.
Revenue has stayed strong supported by higher customer numbers and use of its platform is at "elevated levels".
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