London pre-open: Stocks seen lower ahead of PMIs

London stocks were set to decline at the open on Thursday following a downbeat session in the US.

The FTSE 100 was called to open 17 points lower at 7,072.

CMC Markets analyst Michael Hewson said: “Sentiment has continued to ebb and flow this week, as stock markets continue to get buffeted by concerns about recession against a backdrop of central banks who appear determined to squeeze inflation out of the global economy.

“European markets gave back their early week gains, while US markets after initially opening lower, managed to reverse their early losses to push into the green, before closing marginally lower.”

On the data front, investors will eye the S&P Global/CIPS manufacturing and services PMIs for June, due at 0930 BST.

In corporate news, gambling and gaming group 888 Holdings said it expects interim revenues to be “broadly” in line with expectations.

The Gibraltar-based firm, which is in the process of acquiring William Hill, said revenues were likely to come in between £330m and £335m for the six months to 30 June.

The figure was “broadly in line with board expectations”, it noted, with growth in some European markets offset by the impact of safer gambling measures and 888’s temporary exit from the Netherlands.

Residential landlord Grainger said it had agreed to forward fund and buy the build-to-rent element of a Bristol development for £128m.

The “Redcliff Quarter” comprises 374 private rental homes, as well as 94 affordable homes and six commercial units, the company said.

Real estate investment trust Urban Logistics saw net rental income grow over the twelve months ended 31 March amid “significant” capital deployment and a 25.4% increase in the group’s property valuation to £153.0m.

Urban Logistics said net rental income had surged 59.8% to £36.5m, leading to a total property return of 30.3%, up from 17.1% a year earlier, and an IFRS pre-tax profit of £172.0m.

The FTSE 250-listed company added that it had spent £282.0m on acquisitions throughout the year, at a weighted average net initial yield of 5.3%.

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