London pre-open: Stocks to edge lower after downbeat Asian session

(Sharecast News) - London stocks were for a slightly weaker open on Thursday following a downbeat Asian session. The FTSE 100 was called to open 12 points lower at 7,612.

CMC Markets analyst Michael Hewson said: "We saw another cautious day for European markets yesterday with little in the way of overall direction, after China exports for May plunged by -7.5% raising concerns about the outlook for global demand, while the Bank of Canada followed the RBA in hiking interest rates by 25bps.

"With the prospect of more interest rate rises on the way yields pushed higher, which in turn acted as a drag on equity markets more broadly, even as US markets finished the session mixed, while Asia markets have slipped back."

In corporate news, budget airline Wizz Air said it expected to post a net profit this year after posting a net annual loss due to higher fuel prices and the war in Ukraine.

The company reported an operating loss of €535m, narrower than the €642m a year earlier.

Revenue more than doubled to €3.9bn, while passenger numbers were up 88% to 51 million.

Wizz said it expects a net profit of €350 - 450 million in the current financial year, subject to the absence of adverse events such as an incremental impact from the war in Ukraine or delivery delays.

"This guidance is dependent on the revenue performance for the all-important summer period as well as the second half of F24, a period for which the company, like most airlines, currently has limited visibility," it said.

Elsewhere, Capita said it has agreed to sell five non-core software businesses to AdvancedAdvT for an enterprise value of £33m.

The outsourcing firm expects to receive cash proceeds of around £44m on completion.