London pre-open: Stocks to fall after US, Asian losses; UK GDP in focus

(Sharecast News) - London stocks were set to fall at the open on Thursday following downbeat sessions in the US and Asia after a hotter-than-expected US inflation reading, as investors mulled the latest UK GDP data.

The FTSE 100 was called to open around 22 points lower.

Figures released earlier by the Office for National Statistics showed the economy grew by more than expected in August.

Real gross domestic product ticked up 0.1% in August and by 0.7% over the three months. Consensus had been for the economy to shrink by 0.1% month-on-month, and to grow by a more modest 0.5% in the three months to August.

Driving the quarterly growth was the UK's dominant services sector, which expanded by 0.9% in June to August, and helped offset a 0.2% softening in production and a 1.0% slide in construction.

ONS director of economic statistics Liz McKeown said: "GDP growth showed further strength in the latest three months, led by the services sector, while both production and construction fell. Upward revisions to already strong services growth in June and July helped drive robust growth across the three months, despite services showing no growth in August.

"Computer programming was once again the largest contributor to growth in the three months to August. Looking at a longer-term picture, compared with the same three-month period a year ago, the increased strength now seen in services is evident not just in computer programming but across a range of business-facing industries, including legal services, research and development and advertising."

In corporate news, Travis Perkins reported a 1.6% decline in third-quarter revenue, as UK construction activity stayed subdued, particularly in the new-build residential market amid ongoing macroeconomic uncertainty.

Like-for-like sales fell 1.3% in the three months to 30 September. The group's merchanting businesses continued to prioritise higher-margin trade and tightly manage credit risk, helping to support profitability despite weaker volumes. The company also noted tougher year-on-year comparisons against deeper promotional activity in Q3 2025 and said it remains focused on passing through input cost inflation where possible.

Ladbrokes owner Entain reiterated its FY26 guidance as third-quarter trading showed steady underlying momentum, though Brazil remained a clear drag.

Entain said group net gaming revenue rose 2% on a constantcurrency basis, with online up 3% and gaming up 8%, partly offset by customerfriendly sports results that knocked sports 3% lower. Excluding Brazil, online NGR grew 5%, with volumes up 7% and yeartodate online growth running at 8%.

Entain maintained expectations for 4% to 6% FY26 online NGR growth, excluding Brazil, and underlying earnings at the lower end of the £910m to £960m range.