London pre-open: Stocks to edge up; US data, bank earnings eyed

(Sharecast News) - London stocks were set to edge up at the open on Wednesday as investors eyed the latest US producer price index and retail sales data, and more earnings from US banks.

The FTSE 100 was called to open around 10 points higher.

Investors will be mulling the latest Chinese trade figures, which showed that December trade exceeded expectations, with exports rising 6.6% year-on-year, above the expected 3%.

Danske Bank said: "This robust performance drove China's annual trade surplus to a record high, highlighting resilient external demand despite renewed tariff tensions in 2025. Strong export growth has helped offset weak domestic demand. Shipments to the US fell sharply in December, dropping 30% y/y, while imports declined 29%, signalling a significant reduction in US-China trade throughout 2025.

"Amid these tensions, China's exports fell 20%, as Chinese exporters increasingly redirected trade routes and increased shipments to non-US markets."

Still to come, the US producer price index and retail sales for November are due at 1330 GMT. On the corporate front, meanwhile, quarterly earnings from Citigroup and Bank of America will be in focus later.

In UK corporate news, energy giant BP said it expected to take an impairment charge of $4bn - $5bn in the fourth quarter, mainly related to its energy transition businesses.

Group production in the fourth quarter was expected to be broadly flat compared to the prior quarter, with production broadly flat in oil production & operations and lower in gas & low carbon energy.

Blue chip insurer Prudential named City veteran Douglas Flint as its next chair.

Flint, who spent more than two decades at HSBC, including seven as group chair, will replace current incumbent Shriti Vadera, who is retiring.

He will join the board in March ahead of formally taking up the role at the annual general meeting at the end of May.

Educational publishing and services group Pearson said it expects to report 2025 results in line with guidance, with all sides of the business contributing to growth.

Underlying sales were up 4% over the year, with growth picking up to 8% in the fourth quarter from 4% in the third.

Meanwhile underlying adjusted operating profit rose around 6% to �610m-615m, slightly ahead of the consensus forecast of �606m at the time of the company's last update in October.

Value-added services provider Diploma said it delivered a "very strong" first-quarter performance, with organic revenues growing 14% during the period.

Diploma, which completed four acquisitions for approximately �75m in the three months ended 31 December, maintained its full-year guidance for organic revenue growth at 6% and margins at approximately 22.5%, while also hiking net acquisition growth guidance to 3%.