London open: FTSE nudges up in quiet pre-Christmas trade; US GDP eyed

(Sharecast News) - London stocks nudged higher early on Tuesday in quiet pre-Christmas trade, as investors eyed the latest US GDP reading.

At 0830 GMT, the FTSE 100 was up 0.1% at 9,878.54.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "All eyes are now on the final US data releases of the year, with the Q3 GDP revision and PCE inflation - the Fed's preferred gauge - on the menu ahead of the Christmas break.

"US growth is expected to have exceeded 3% in Q3, with AI-related investment accounting for a significant share, while price pressures are expected to have firmed. A combination of stronger growth and higher inflation could revive the Fed's hawks, unless the more up-to-date PCE data proves soft enough to bolster the dovish camp.

"At present, Fed funds futures price roughly a 20% probability of a rate cut in January and slightly above a 50% chance of a cut in March. Any increase in expectations for further easing would support equity valuations, though cyclical and non-tech segments are likely to benefit more than richly valued Big Tech."

Preliminary third-quarter US GDP figures are due at 1330 GMT, along with the PCE.

Corporate news was unsurprisingly thin on the ground, but Pets at Home rose after it announced the appointment of former Waitrose managing director James Bailey as chief executive officer, replacing Lyssa McGowan who stood aside in September after a profit warning.

Bailey was MD of Waitrose for more than five years from April 2020 steering the business through the Covid pandemic and high inflation that followed, the pet care company said. He also relaunched Waitrose.com after the company moved off the Ocado platform.

HSBC was in focus as it said senior independent director Ann Godbehere will be stepping down and retiring from the board at the bank's annual general meeting next year. Godbehere oversaw the company's search to replace Mark Tucker as chair.

Outside the FTSE 350, Mothercare gained as the early years kids goods retailer said it wants to rebuild its scale in the UK and globally after a big slump in adjusted profits in its first half as retail sales dropped by a quarter.