London pre-open: Stocks to nudge lower; Halifax house prices in focus
London stocks were set to nudge lower at the open on Monday despite a positive session in Asia.
London Capital Group analyst Jasper Lawler said: “After an ideal opening week for equities in 2018, traders will be testing the waters early on Monday for signs of a reality-check. US fourth quarter earnings, inflation data as well as the durability of the commodity rally are all top of the Watchlist this week.
“Shares in Europe look set for a strong open on Monday. The FTSE 100 could buck the trend by opening lower after a record-breaking first week of trading in 2018. Optimism stemming from strength of European and global economy should help the German DAX index open at 7-week highs. The opening strength tracks small gain in Asia, where markets were unperturbed by reports from China that the PBOC think ‘there is room for an increase in interest rates in the short term”.
The FTSE 100 was expected to open six points lower at 7,718.
On the data front, Halifax house prices are at 0830 GMT.
In corporate news, software group Micro Focus said interim pre-tax profits rose 28.7% to $145.7m as the dividend was hoisted by 16.4% to 34.60 cents a share.
Operating profits rose 34.7% to $220m, while basic earnings per share fell 9.5% to 35.83 cents.
The company said its chief financial officer Mike Phillips would move to a new position as director of mergers and acquisitions with his former role filled by Chris Kennedy.
TP Icap has acquired US-based energy and commodities broker SCS Commodities based for an undisclosed cash sum and further performance-related amounts over five years.
SCS's 26 brokers specialise in in crude oil futures, soft commodities, petroleum and refined products, natural gas options and crude oil options.