London pre-open: Stocks seen up after long weekend

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Published May 09, 2023 08:26

London pre-open: Stocks seen up after long weekend

Sharecast - The FTSE 100 was called to open 25 points higher at 7,803.

On the macro front, investors were digesting the latest trade numbers out of China.

CMC Markets analyst Michael Hewson said: "In an encouraging development for the global economy last month, the March China trade numbers showed that the Chinese economy started to gain momentum in the aftermath of Chinese New Year, as exports surged by 14.8%, the first rise since September, while imports declined a less than expected -1.4%.

"These numbers suggested that domestic demand was starting to recover after months of lockdowns, and recent PMI data appears to have borne that out.

"The wider question is whether this trend is sustainable or simply a case of catch-up demand or rebound spending. Exports for April were expected to slow to 8%, but came in at 8.5%, while imports were expected to come in flat, and declined by 7.9%, although some of that may be down to lower prices in some areas, rather than lower volumes.

"European markets look set to open slightly higher."

In corporate news, landscaping materials group Marshalls PLC (LON:MSLH) cut annual guidance after like-for-like sales fell 14% in the first four months of the year due to a reduction in new house building and continued weakness in private housing maintenance activity.

In the first quarter of the year, National House Building Council new housing starts were 27% lower year on year, which hit all the group's reporting segments, Marshalls said on Tuesday,

"Management have acted quickly to reduce costs in the business and are accelerating plans to improve production efficiency, whilst ensuring flexibility to respond when market demand improves," it added.

Elsewhere, JD Sports (LON:JD) said it has agreed to buy French sportswear retailer Courir in a €520m deal.

Chief executive Régis Schultz said: "We are delighted to announce the proposed acquisition of Courir, a business that is held in high regard in the European sportswear community. We look forward to concluding the contemplated transaction, welcoming the Courir team to the group and then working with management to fulfil Courir's global potential.

"Investing in quality complementary concepts whilst furthering the growth of JD itself is a key strategic pillar for the group and one which we will continue to pursue in the future."

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