London pre-open: Stocks seen up on positive Asian cues; Rathbone Brothers in focus
London stocks were called to open higher on Monday, taking their cue from an upbeat session in Asia on what looked set to be a fairly quiet day.
The FTSE 100 was expected to open 22 points higher at 7,205.
On the data front, Halifax house prices for March are at 0830 BST.
London Capital Group analyst Jasper Lawler said: "Steep declines on Wall Street have been shrugged off in Asian markets overnight and European shares look set for a positive open. US shares had initially held up relatively after President Donald Trump threatened another $100bn in tariffs against China. Few were willing to hold on over the weekend after US Treasury Secretary Steven Mnuchin acknowledged the possibility of a trade war. Trump tweeted over the weekend with respect to China that ‘Taxes will become reciprocal & a deal will be made on intellectual property.’ Trump’s softened stance offers some hope for calm in his trade dispute with China.
"Compounding the issue, Federal Reserve Chairman Jerome Powell showed no signs of support for markets by indicating the Fed would push ahead with more rate hikes this year. The New Fed Chair seems determined not to be swayed by argument of tighter ‘financial conditions’ generated by lower stock prices and higher bond yields. It may take another 10% decline in US indices to truly test Powell’s nerve."
Things were exceptionally quiet on the corporate front, with traders suggesting there may be an issue with the Regulatory News Service, where only one press release was out.
Wealth manager Rathbone Brothers confirmed market rumours on Monday that it was in takeover talks with Scottish stockbroker Speirs & Jeffrey Limited.
Rathbone said no binding offer had been made and there can be "no certainty that any binding offer will be made nor that agreement will be reached with the Board and shareholders of Speirs & Jeffrey".