London pre-open: Stocks seen muted amid stronger pound
London stocks were set for a muted open on Monday despite Asian gains, with the stronger pound likely to weigh.
The FTSE 100 was called to open two points lower at 7,722.
London Capital Group analyst Jasper Lawler said: "The currency correlation between the FTSE and the pound has been notably strong over the last week. Given the pound is already up 0.2% in early trade, the FTSE is expected to struggle on the open, lagging behind its European peers."
Investors will be digesting events in Italy, where the two anti-establishment parties, Five Star Movement and League, were locked in talks over the weekend.
Lawler said: "The leader of the Eurosceptic party Five Star Movement, Luigi Di Maio and far right leader of the League, Matteo Salvini, are attempting to create a functioning coalition government to fill the political vacuum which Italy has experienced since the Italian election in March. The popularist parties are expected to announce their decision on Monday. Should their negotiations, be going well, as reports suggest, and they agree upon a Prime Minister who is accepted by the Italian President, they will be the first anti-establishment government in Italy and in Western Europe."
In corporate news, Entertainment One's major TV series Designated Survivor has been dropped by US network ABC, which could affect revenue next year depending on the speed and size of a replacement deal.
The news from ABC comes less than four months after the FTSE 250 company snapped up the series' producer Mark Gordon Company, for which Designated Survivor had been the recent main revenue driver.
Centrica said it lost 110,000 customers in the UK in the first four months of the year, although it said the “Beast from the East” snowstorm in February helped increase customer demand in a tough competitive environment.
The company on Monday faces a tough annual meeting of shareholders who have seen the value of the stock halve in the last four years.
Technical products and services supplier Diploma issued its half-year numbers on Monday, reporting revenue and adjusted operating profit increases of 8% and 9%, to £234.9m and £40.6m respectively.
The FTSE 250 firm said underlying revenue improved by 7%; currency movements decreased revenues by 4% and businesses acquired made a contribution of 5% for the period to 31 March.
Indivior has reached a settlement over its Suboxone treatment for opioid addiction with Par Pharmaceutical, allowing it to begin selling a generic version from 1 January 2023 in exchange for undeclared conditions.
Indivior chief executive Shaun Thaxter said: "We continue to seek greater certainty for Indivior, but on terms that adequately reflect the strength of our intellectual property."