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London open: Stocks edge higher as investors eye GDP; Lloyds in focus
Stocks in London edged higher in early trade, buoyed by a strong performance in the US, where indices closed at fresh highs, as investors awaited the release of UK economic growth figures.
At 0825 GMT, the FTSE 100 was up 0.3% to 7,292.82.
On the corporate front, gross domestic product data for the fourth quarter is at 0930 GMT. In the US, existing home sales are at 1500 GMT while the FOMC minutes are at 1900 GMT.
Accendo Markets‘ Mike van Dulken said: “In focus today will be UK Q4 GDP for which the second estimate is seen unchanged at 0.6% quarter-on-quarter for a third straight quarter and year-on-year for the second quarter in a row as the Index of Services and Business Investment both cooled into the end of last year.
“Fed Minutes may also garner a smidgen of attention this evening given the hawkish rhetoric from the central bank of late (“unwise to wait too long”) and decent US data, although political uncertainty could yet play a part in delaying, even scuppering, plans for multiple hike stateside interest rate hikes this year.”
In corporate news, Lloyds Banking Group shares rallied after it more than doubled full year pre-tax profits to £4.2bn from £1.6bn in 2015 as it announced a special 0.5p-a-share dividend.
Housebuilder Barratt Developments was also on the front foot as it posted a first-half pre-tax profit of £321m, up 8.8% on the same time a year ago.
Metro Bank advanced as it said its full year pre-tax losses narrowed to £16.7m from £49.1m and reported a 56% rise in deposit growth to £7.9bn
Unite Group was also in the black as the student accommodation manager posted a 24% rise in adjusted earnings for 2016 to £61.3m.
UBM racked up strong gains as the events company reported a rise in 2016 pre-tax profit to £120.1m from £119.6m the year before.
Petrofac pushed higher after the oilfield services group said it swung to a profit in 2016.
On the downside, Weir Group declined after it said pre-tax profit in the year to the end of December fell 22% to £170m.
FTSE 250 recruiter Hays was in the red despite reporting a rise in net fees and profit for the first half of the year, thanks to solid performances in Germany and Australia.
Drug maker Indivior slumped after it said pre-tax profit for 2016 was dented by a one-off litigation charge.
