London pre-open: Stocks to nudge higher; Q1 GDP confirmed

London stocks were set to nudge up at the open on Monday.
The FTSE 100 was called to open around five points higher.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Other than the European inflation figures and Trump's tax bill - aimed to pass before the July 4th holiday - the market's attention this week will also turn to the latest US jobs report and a series of final PMI prints.

"In energy markets, oil prices are worth watching as they give back the Middle East-led gains. WTI crude is sitting on a key Fibonacci support near $65 per barrel - the level that separates the year-to-date bearish trend from a potential medium-term bullish consolidation. Expectations that OPEC may announce a plan to bring more oil to market at its July 6 meeting could give bears the upper hand into the weekend."

On home shores, data released earlier by the Office for National Statistics showed the economy grew 0.7% in the first three months in the year, confirming a preliminary estimate released in May.

Investors will also mulling the latest growth indicator from the Confederation of British Industry, which showed that UK companies remain deeply uncertain about their near-term growth prospects as they continue to battle higher costs and global headwinds.

The CBI said the balance of private sector companies expecting activity to fall in the three months to September was -18.

The print was an improvement on May's low of -30. But it remains firmly in negative territory.

A balance is the weighted percentage of companies reporting an increase minus those reporting a decrease.

Business volumes were forecast to slide in the retail and wholesale sectors, with the -40 balance the weakest since September 2022.

Business and professional services also forecast a fall, with a balance of -10, as did consumer services, at -31. Overall, the service sector had a balance of -14.

Alpesh Paleja, CBI deputy chief economist, said: "While negative expectations for activity have eased a little, our surveys still point to challenging conditions for businesses.

"Firms cite a very mixed picture on activity. While there are pockets of strength in the economy, it's clear that sizeable headwinds to growth remain.

"Companies are still grappling with higher employment costs, cautious spending behaviour on the part of households, and increasing global uncertainty.

"The recent volatility in global oil prices is also one to keep an eye on, given its scoop to exacerbate costs and inflationary pressure."

In corporate news, aerospace and defence products business Chemring said it has acquired Hampshire-based software-defined radio systems manufacturer Landguard Nexus in a deal worth as much as £20m.

Chemring said the acquisition will bring 30 specialist engineers to its Roke business, in addition to a suite of "market-leading products".

Suburban housing investment trust PRS REIT said it was still in talks on a potential sale worth £631m with real estate management firm Long Harbour.

PRS put itself up for sale last year and received "several" non-binding proposals, with none beating Long Harbour's 115p-a-share proposal.

"There can be no certainty that an offer will be made, nor as to the terms of any offer if made. All other non-binding proposals have now been withdrawn," PRS said.