London pre-open: FTSE seen up as attention turns to BoE

(Sharecast News) - London stocks were set for more gains on Wednesday as investors looked ahead to this week's policy announcement from the Bank of England. The FTSE 100 was called to open around 15 points higher.

Danske Bank said: "Tomorrow, we expect the Bank of England (BoE) to keep the Bank Rate unchanged at 5.25%, which is in line with consensus and current market pricing.

"Overall, we expect the MPC to cautiously soften its communication priming markets for a rate cut, delivering the first cut of 25bp in June."

In corporate news, technical instruments maker Renishaw lowered full-year guidance amid what it described as "mixed" markets as earnings fell over the first nine months of its financial year.

In a trading update, the company said it now expects revenue to be in the range of £680m to £700m and adjusted profit before tax of £122m to £135m. This compares with £675m - £715m and £122m - £147m forecast at Renishaw's interim results in February.

B2B events, publishing and data group Informa lifted its share buyback programme by 50% after announcing a strong operating performance for the first four months of the year, with revenues, profits and cash flow expected to reach the upper end of guidance.

The company said it has raised its 2024 share repurchase programme by a further £160m to £500m.

Elsewhere, pub group JD Wetherspoon said it expects full-year profits to be towards the top of market expectations as it reported a 5.2% jump in like-for-like third-quarter sales.

Chairman Tim Martin said: "Sales in the period continued the steady recovery from the pandemic.

"Traditional ales, which were very slow in the aftermath of the lockdowns, are increasing momentum, with Abbot Ale, Ruddles Bitter and Doom Bar showing good growth, as indeed are ales from the many small and micro brewers with which we trade.

"The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations.

"Also selling well among younger generations are Au Vodka from Swansea and XIX flavoured vodkas, the latter promoted by the hugely popular Sidemen."