London pre-open: Stocks to edge down as investors mull GDP

16th Apr 2026 07:33

(Sharecast News) - London stocks were set to edge down at the open on Thursday as investors mulled the latest UK GDP reading and looked ahead to the resumption of US-Iran peace talks.

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

Summing up the latest developments in the Middle East, Danske Bank said: "Israel's cabinet is discussing a potential ceasefire deal with Lebanon, which could be announced soon according to Lebanese officials. Ending the Lebanon conflict is seen as important for broader peace talks between the US and Iran. However, as Hezbollah is not part of the talks, it remains unclear if the group would comply with a ceasefire. US-Iran talks may resume in Pakistan this weekend after previous discussions stalled, although no date has been set yet.

"The Trump administration expressed optimism on Wednesday about resolving the conflict; President Trump stated in an interview with Fox news that the Iran war is 'almost over'. That is despite enforcing a shipping blockade, that so far appears to have made nine ships turn around in the Strait of Hormuz and as traffic through the Strait remains subdued compared to pre-war levels."

On home shores, figures from the Office for National Statistics showed the economy grew by more than expected in February, on the back of broad-based growth across the country's dominant services sector.

GDP grew by 0.5% in the three months to February, ahead of consensus for a 0.2% uplift. Growth in January was upwardly revised to 0.3% from 0.2%.

In February, services output rose by 0.5%, while production grew by 1.2%, both of which helped offset a 2.0% slide in construction.

In corporate news, supermarket giant Tesco widened guidance for 2026/27 to reflect increased uncertainty caused by the US-Israel war on Iran.

"Much will depend upon the duration of the conflict and in particular, the potential implications for UK households and the economy more broadly," the company said.

"At this stage, we are expecting to deliver adjusted operating profit of between £3.0bn and £3.3bn." It reported a 0.8% rise in adjusted operating profit to £3.15bn, beating estimates of £3.10bn, according a company-compiled consensus.

Pest control and business services firm Rentokil Initial reported a solid start to the year, with first‑quarter group revenues rising 4.3% to $1.68bn, supported by 3.4% organic growth.

Rentokil said its North America division delivered a strong performance, with revenue up 4.5% to $995m and organic growth of 3.9%, while its international segment generated $682m in revenues, an increase of 4.1% year-on-year, with organic growth of 2.8% despite pockets of regional pressure.

Updates from Schroders, Dunelm and Entain, and results from easyJet were also in focus, among others.