London pre-open: Stocks seen up as all eyes remain on sterling

(Sharecast News) - London stocks were set to rise at the open on Tuesday, with all eyes on the pound after it tanked to its worst level against the dollar since 1971. The FTSE 100 was called to open 30 points higher at 7,051.

On Monday the Bank of England issued a statement in which governor Andrew Bailed said the MPC would "not hesitate to change interest rates by as much as needed to return inflation to the 2% target sustainably in the medium term".

Responding to the slide in the pound, the Bank insisted it was monitoring financial markets "very closely" and that the MPC plans to "make a full assessment at its next scheduled meeting".

Victoria Scholar, head of investment at Interactive Investor, said: "The central bank has decided to hold off from an emergency rate hike, instead opting for an attempt at verbal intervention instead.

"However, the statement, which was designed to stem further losses for sterling did in fact the exact opposite. Currency traders sold the pound following the release amid a sense of disappointment that more aggressive action wasn't taken. It looks like an emergency rate hike is off the table at least for now with the Bank of England aiming to raise interest rates in five weeks' time at its next meeting on 3rd November."

In corporate news, travel food outlet operator SSP Group said it still expected a return to pre-Covid levels of like-for-like revenue and core earnings by 2024.

"As we look ahead to the 2023 financial year, whilst there remains considerable uncertainty in the macroeconomic environment, we are confident that our flexible and resilient business model will enable us to continue to offset cost inflation, manage supply chain and labour volatility, and optimise profitability and returns," the company said.

Sales and marketing firm DCC has agreed to acquire PVO International, a distributor of solar panels, invertors, batteries and accessories used in the commercial, industrial and domestic energy sectors across continental Europe.

DCC said the acquisition of PVO was "an excellent strategic fit" for the group, leveraging its market position in the fast-growing solar PV marked. Financial terms of the deal were not disclosed.