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London pre-open: Stocks to edge down on negative US close; retail sales eyed
London stocks were set to edge lower at the open on Friday, taking their cue from a negative close on Wall Street as investors eyed UK retail sales figures.
The FTSE 100 was expected to open six points lower at 7,694.
CMC Markets analyst Michael Hewson said: "With US stocks once again hitting record highs this week, the weekend fast approaching, and a growing impasse in Washington showing no signs of being broken, we saw some light profit taking as the prospect of a US government shutdown came closer to being realised.
"This weakness is likely to translate into a lower European open this morning in a week where European stocks have struggled for direction, against a continued difficult and uncertain political backdrop in Germany."
UK retail sales at 0930 GMT will be the main focus.
Hewson said: "The latest UK retail sales numbers for December are unlikely to be as positive as the November figures were where Black Friday presales helped boost numbers to 1.1%, but it would be surprising if they are as bad as some are predicting.
"The recent BRC retail sales numbers for December showed an unexpectedly positive number of 0.6%, so despite general expectations that the official retail sales numbers for December could show a sharp decline in the region of -0.9%, we could see a number that comes in better than that.
"That in term would bode well for next week's preliminary Q4 GDP number."
In corporate news, HSBC has agreed a financial settlement with the US Department of Justice to conclude its investigation into the bank's possible historical foreign exchange misdemeanours.
The bank will pay the DoJ a total of $101.5m, including a US$63.1m fine and US$38.4m in restitution, and has agreed to put further compliance procedures and controls in place.
AstraZeneca and its global biologics research and development arm, MedImmune announced on Friday that the Japanese Ministry of Health, Labour and Welfare has approved Fasenra (benralizumab) as an add-on treatment for bronchial asthma in patients who continue to experience asthma exacerbations despite treatment with high-dose inhaled corticosteroid and other asthma controllers.
The drugmaker also issued an announcement along with Merck & Co, confirming that the Japanese authorities have also approved Lynparza (olaparib) tablets at 300mg twice daily for use as a maintenance therapy for patients with platinum-sensitive relapsed ovarian cancer.
Funeral provider Dignity issued a profits warning on Friday for 2018 as it announced a 25% price cut in its simple funerals and a freeze on the cost of traditional ceremonies, blaming accelerating competition.