London pre-open: Stocks to rise as investors mull retail sales
(Sharecast News) - London stocks were set to rise at the open on Friday following heavy losses in the previous session, as investors digest the latest UK retail sales data.
The FTSE 100 was called to open 50 points higher at 7,070.
CMC Markets analyst Michael Hewson said: "Because of the positive US close, and positive Asia session, European markets are set to see a positive open, with today's focus on UK retail sales for May, and the latest German IFO survey for June."
Figures released earlier by the Office for National Statistics showed that retail sales fell in May as households cut spending on food amid the cost-of-living crisis.
Retail sales were down 0.5% following a 0.4% increase in April. This was due mainly to a 1.6% decline in food store sales.
In corporate news, the £2.6bn takeover of British defence manufacturer Ultra Electronics by a US private equity firm looks set to be waved on by the UK government after the Department for Business said it was minded to accept the deal.
Cobham last year launched a takeover of Ultra Electronics, which makes systems such as sonar and radio communications used by military and civilian aircraft. Cobham was itself controversially taken over and broken up by US private equity investor Advent over 2019 and 2020.
Elsewhere, Barclays Bank has agreed to acquire UK specialist mortgage lender Kensington Mortgage Company as part of a deal valued at approximately £2.3bn.
The bank said on Friday that the acquisition of Kensington Mortgage Company will be financed from existing resources and enable the bank to broaden its product offering and capabilities in the UK mortgage market. KMC, as well as a portfolio of UK mortgages, will be purchased from companies controlled by funds managed by Blackstone Tactical Opportunities Advisors and funds affiliated with Sixth Street Partners.
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.