London pre-open: Stocks seen up after AI-fuelled selloff

(Sharecast News) - London stocks were set to edge up at the open on Wednesday, having been hit in the previous session by worries about the impact of AI on a host of FTSE 100 stocks.

The top-flight index was called to open around 10 points higher.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The relief that came with the easing selloff across the metals space lasted until news broke that Anthropic, an AI startup backed by Amazon and Google, had rolled out a new AI tool designed to handle legal and research work traditionally done using paid databases.

"The announcement spooked markets, triggering a sharp selloff in software companies that sell data analytics and decision-making tools to lawyers, banks and corporates, on fears that AI and new players are coming for their lunch - and at an accelerated pace.

"Yesterday was therefore marked by panic and a fresh wave of selling, particularly among software companies. In Europe, Relx and London Stock Exchange Group plunged 14% and 12% respectively in the FTSE 100. Thomson Reuters lost 15%, while Experian, Pearson and Sage also saw their shares caught up in the move."

In corporate news, pharma giant GSK said turnover growth would slow this financial year as it looked to counter the expiry of an HIV drug patent and a deal with the Trump administration to lower product prices in the US.

The company expects sales to grow 3% to 5% this year, on a constant currency basis compared to 7% in 2025.

Beazley said that it has reached an agreement in principle on the terms of an �8bn takeover by Zurich Insurance.

Under the terms of the proposal, Zurich will pay 1,335p per share, which is a 59.8% premium to the closing share price on 16 January, the last business day before the offer period.

SSE forecast a dip in annual earnings as mixed weather conditions offset an otherwise robust operational performance.

The power generator - which last November unveiled a �33bn investment programme intended to increase its exposure to UK electricity networks - said adjusted earnings per share for the current year were set to come in between 144p and 152p.

SSE said the guidance reflected "strong operational performance against mixed weather conditions".

The FTSE 100 firm posted adjusted earnings per share of 160.9p in the year to 31 March 2025.

Energy business DCC said that thirdquarter adjusted operating profits had grown strongly yearonyear on a continuing basis, supported by solid organic growth and a firsttime contribution from recently acquired Austrian LPG business, FLAGA.

DCC said its Energy division delivered a robust performance, with its largest unit, Solutions, posting good operating profit growth driven by strength in Energy Products. However, it also noted that this was partly offset by tougher trading conditions for Energy Services in the UK.