Source: Sharecast
The FTSE 100 was called to open down around 55 points.
Figures from the Office for National Statistics showed that government borrowing rose to £20.2bn in April, up £1bn on the same month a year ago and coming in above the £18bn expected.
It was the fourth-highest figure for April borrowing since records began in 1993.
The data also showed that borrowing for the year to March was £148.3bn. This is £11bn higher than the £137.3bn forecast by the Office for Budget Responsibility but £3.7bn lower than the initial estimate.
Elsewhere, a survey showed that consumer sentiment strengthened in May after the UK secured a key trade deal with the US.
According to the latest consumer sentiment monitor from the British Retail Consortium, expectations for the state of the economy over the next three months improved to -36 from -48 in April.
The personal financial situation also nudged higher, to -12 from -16, although personal spending on retail fell three points to 0 and personal spending overall was unchanged at 10.
Helen Dickinson, chief executive of the BRC, said: "Consumer confidence improved as UK economic growth picked up and geopolitical tensions eased as the US-China trade war began to cool.
"However, it remains far below levels seen last year."
US president Donald Trump unveiled his sweeping global tariff regime on 2 April, with a number of countries - including China and the European Union - imposing their own reciprocal taxes.
However, since then Beijing and Washington have agreed a 90-day truce which has seen both countries slash previously sky-high tariffs on each other’s imports, while at home, the UK signed key trade deals with the US, India and the EU.
Dickinson said: "Only weeks ago, consumers were facing uncertainty arising from Trump’s eye-water tariffs. Fast-forward to today and the UK has trade deals with some of the world’s largest economies.
"While agreements with the US and India may have helped this month’s boost in consumer confidence, it is hoped the latest EU deal will drive further confidence in the outlook for the economy and personal finances."
In corporate news, budget airline easyJet posted a first-half loss before tax of £394m, in line with consensus, and said forward bookings for the third quarter were 80% sold.
The company added that current bookings are supportive of performance meeting full-year consensus estimates, but it remained mindful that, “consistent with this stage each year, there is still an important booking period for peak summer to go”.
BT Group posted an unexpected fall in annual revenues and pointed to further declines over the coming year.
The telecoms giant, which in January guided to 1-2% revenue growth from the previous year’s print of £20.8bn, said revenues totalled £20.4bn in the 12 months to 31 March, down 2% due to “continued challenging trading conditions in our Global and non-UK Portfolio channels and weaker handset trading in Consumer”.
For the year ending March 2026, revenues are tipped to be around £20bn.