London pre-open: More gains expected after record close; Rio Tinto in focus

(Sharecast News) - London stocks were set for more gains on Thursday following a record close in the previous session, after a drop in inflation boosted hopes of a rate cut in March. The FTSE 100 was called to open around 21 points higher.

Investors will be mulling the latest minutes from the Federal Reserve, released overnight.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Futures are slightly positive this morning, but yesterday's Fed minutes will certainly not be a great help. Despite insults, firing threats, personal attacks and public pressure from the White House and the US President himself, the latest FOMC minutes showed that some Fed members wanted to add a statement saying, 'if inflation remains above target levels', the Fed could raise rates.

"That would spook the White House, which wants these rate cuts, and could also create tensions over the Fed's trajectory when Powell is replaced by Mr. Warsh, who more likely than not gave a sort of promise to the White House that he would push for lower rates come hell or high water.

"It would be great, however, if the Fed's direction is justified by economic data, because otherwise policy transmission may not go smoothly. The Fed could cut rates, but yields wouldn't necessarily follow lower, limiting the impact on borrowing costs or mortgage rates that have a real effect on the economy and demand."

In UK corporate news, Rio Tinto posted a 14% drop in full-year net profit as weak steel demand in China hit iron ore earnings, despite better prices for copper and gold.

The company, which recently abandoned merger talks with rival Glencore, said net profit came in at $9.97bn in 2025 compared with $11.55bn a year earlier.

British Gas owner Centrica reported a decline in full-year operating profit in a "challenging environment", with varied performance across the business.

In the year to the end of December 2025, operating profit fell to £814m from £1.5bn the year before.

Paper and packaging group Mondi slashed its dividend after a 29% slump in annual profits in 2025, as it pointed to further declines in paper prices over the first quarter as a "prolonged cyclical downturn" continues across the sector.

The company declared a final dividend of just 4.92 euro cents for 2025, down from 46.67 cents the year before, taking the total payout to just 28.25 cents, down from 70 cents previously.

Self-storage group Safestore reported a solid start to the year, with first‑quarter revenues rising 7.9% to £61.2m, or 6.3% at constant exchange rates, supported by growth across both like‑for‑like and newly opened stores.

Like‑for‑like revenues increased 4.2%, with closing occupancy standing at 77.8% of current lettable area. The average storage rate rose 4.8% to £31.19.