London pre-open: Stocks seen higher, with politics in focus
London stocks were set for a positive open on Monday as investors eye European politics and UK Prime Minister Theresa May’s trip to Brussels to meet with European Central Bank chief Jean-Claude Juncker and EU Brexit negotiator Michel Barnier.
The FTSE 100 was expected to open 19 points higher at 7,554.
Politics were likely to be in focus as Catalan President Carles Puigdemont has until 0900 BST to say whether he will be calling for independence in the Catalonia region.
Market participants were also likely to be digesting the latest news from Austria, where the conservative Austrian People's Party’s Sebastian Kurz’s looked set to become Europe’s youngest leader.
In addition, May’s meeting with Juncker and Barnier will be closely watched after the latter said last week that Brexit negotiations had reached “deadlock”.
CMC Markets analyst Michael Hewson said: “The performance of the pound last week suggests that markets think this is the latest in a bout of political posturing, with traders more interested in this week’s UK economic data, and central bank testimony from Carney, Tenreyro and Ramsden. Ultimately we could well get some movement on the subject of trade talks over the course of the next few days.
“It is becoming increasingly obvious that the subject of trade and money are inextricably interlinked, particularly where the Irish border is concerned and the refusal of the EU to engage on this is causing some concern, particularly in Ireland.”
There are no major UK data releases due.
In corporate news, ConvaTec Group warned that profits for the full year will be lower than it had previously guided and that growth targets in 2018 may need to be adjusted.
Although revenues in the third quarter grew 6.7% to $445.5m, the FTSE 100 company said it now anticipated full year organic revenue growth of 1-2% after performance was severely affected by supply issues in both advanced wound care and ostomy care and a lower than anticipated revenue contribution from new products, which also damaged it profits margins.
Ultra Electronics’ Cheltenham-based Precision Control Systems business has received contracts valued $16m from Boeing and Lockheed Martin.
PCS will supply additional tranches of its “world-leading” high pressure pure air generators stores ejection systems for front line US and international strike aircraft. The company said no further information can be provided in relation to this award due to security consideration.
Financial technology company NEX Group announced on Monday that - having put into motion the “significant restructure” of the company’s post trade division 'NEX Optimisation' - Jenny Knott has decided to step down as the division's CEO.
The firm said Ken Pigaga, global chief operating officer of NEX has been appointed CEO of NEX Optimisation effective immediately. Knott will remain with the company for a period to ensure an orderly handover.