London stocks were set to rise at the open on Tuesday following another record close on Wall Street, as investors mulled the latest UK borrowing figures.
The FTSE 100 was called to open 15 points higher at 7,502.
CMC Markets analyst Michael Hewson said: “European markets saw a cautious but broadly positive start to the week, despite weakness in basic resources which served to weigh on the FTSE 100.
“US markets picked up where they left off on Friday with new record highs for the Dow, S&P 500 and Nasdaq 100 although we did see a loss of momentum heading into the close, as US yields rebounded off their lows of the day.
“The tentative nature of yesterday’s gains appears to be being driven by a degree of caution ahead of some key risk events over the next couple of weeks, starting today with the latest Bank of Japan policy decision. This is set to be followed by the European Central Bank on Thursday, and then the Fed and Bank of England next week.”
Data released earlier by the Office for National Statistics showed the government borrowed much less than expected last month.
Public sector borrowing, excluding banks, rose £7.8bn in December, which was below the £14.1bn economists were expecting. It was also £8.4bn below the amount borrowed a year earlier and marked the lowest borrowing for the month of December since 2019.
In corporate news, sales at clothing retailer Primark grew 2.1% on a like-for-like basis over the Christmas period despite warmer weather, parent company Associated British Foods, adding that it did not expect supply disruptions from attacks on commercial shipping in the Red Sea.
Premier Foods, the food manufacturer behind brands like Mr Kipling, Bisto and Ambrosia, said it is on track to hit profit forecasts this year after a solid third quarter with double-digit sales growth across the group.
Sales in the three months to 30 December were up 14.4% over last year, helped by market share gains of 121 basis points.
In its outlook statement, the company added that a full resolution of its pensions schemes is expected within three years, “which will open up a range of value enhancing opportunities to further accelerate shareholder value”.
Vistry Group announced that its Countryside Partnerships division has been chosen as the preferred developer by the Greater London Authority to construct 739 mixed-tenure homes in Colindale, Barnet, under a £276m development scheme.
The firm said the project would include 427 affordable homes, making up 60% of the development, with a mix of affordable rent, social rent, and shared ownership properties.
It would also feature 144 build-to-rent homes and 168 homes for private sale, subject to planning approval, and would start in summer 2025, with completion set for 2030.
