London pre-open: Stocks seen lower amid ongoing trade jitters
London stocks were set for a weaker open on Monday amid ongoing trade tensions following the G20 summit.
The FTSE 100 was called to open 33 points lower at 7,645.
CMC Markets analyst Michael Hewson said: "Having spent the last few months worrying about a trade war, markets got something else to worry about at the end of last week when President Trump outlined his unhappiness about the strength of the US dollar, as well as the prospect of further rate rises from the US Federal Reserve. He went on to accuse the EU and China of deliberately weakening their currencies, as well as expressing a willingness to impose tariffs on all Chinese imports into the US.
"These comments prompted a sharp fall in the US dollar and raised concerns that currencies may well be about to be brought onto the field of battle as another weapon in the war of tariffs and trade, as the US administration tries to limit the effects of its own fiscal stimulus, and buoyant economy on the US dollar.
"There was no sign at the weekend G20 finance ministers meeting that either side was prepared to give ground with the French finance minister Bruno Le Maire reiterating that the EU would not negotiate with a “gun to our head” and the German finance minister Olaf Scholz pushing back on the claims that the EU artificially holds down its currency."
Looking ahead to the rest of the week, European Commission President Jean-Claude Juncker is due to meet Trump at the White House on Wednesday.
In corporate news, budget airline Ryanair posted a 20% drop in first-quarter pre-tax profit on Monday as higher costs and strikes took their toll.
Pre-tax profit fell to €345.4m, while profit after tax was also down 20%, to €397m. Revenue rose 9% to €1.9bn as ancillary revenue pushed up 25%, while and passenger numbers grew 7% to 37.6m.
Chief executive officer Michael O'Leary attributed the drop in profit to lower fares, the absence of Easter in the quarter, higher oil price and pilot costs.
BHP Billiton said it would defend a class action by investors over the Samarco dam disaster of 2015 that killed 19 people.
The claim, served in Australia, alleges BHP breached disclosure obligations and engaged in misleading and deceptive conduct.
Paragon Banking Group updated the market on its trading on Monday, based upon the business performance from 1 October to 30 June, saying it continued to operate “in line” with the board's expectations.
The company said that, in the quarter to June, mortgage lending totalled £409.4m, taking year-to-date lending to £1.13bn, up from £1.06bn year-on-year. Commercial lending totalled £179.7m, taking year to date lending to £449.0m, which was up from £285.0m this time last year.