London pre-open: Stocks to push up as tensions between the US and China ease
London stocks were set for an upbeat start on Monday as investors digested some good news regarding relations between the US and China.
The FTSE 100 was called to open 47 points higher at 7,825.
CMC Markets analyst Michael Hewson said: "The continued buoyancy in European markets is being helped in no small part by the weakness in both the euro and the pound against the US dollar, while concerns about an escalation in tensions between China and the US appear to have been deferred in the short term after progress in trade talks at the weekend, which saw US Treasury Secretary Steve Mnuchin announce the suspension of $150bn worth of tariffs on Chinese imports until further notice, after it was claimed that the parties were in discussions that would see China could “significantly increase purchases’ of US goods.
"This deferral of tensions should see markets in Europe get off to a positive start this morning with the FTSE100 on course to open at a record high."
In corporate news, budget airline Ryanair posted a 10% jump in full-year pre-tax profit on Monday but said its outlook for FY19 was on the "pessimistic side of cautious" on the back of rising costs and flat fare growth as it cut its full-year guidance.
In the year to the end of March 2018, pre-tax profit rose to €1.6bn from €1.5bn the year before, as total operating revenues increased 8% to €7.2bn. Passenger numbers increased 9% to 130.3m despite 25 winter aircraft being grounded and the load factor - which gauges how the planes are - came in at 95%.
AstraZeneca received US regulatory approval for its Lokelma treatment for hyperkalaemia, an increased level of potassium levels in the blood suffered by many people with chronic kidney disease and heart disease.
Separately, the FTSE 100 drug company submitted a new drug application in Japan for a diabetes treatment, following recent approval in Europe.
NewRiver was forced to admit that it has entered a period of exclusivity with Hawthorn Leisure Holdings and its major shareholder regarding a potential acquisition of the business on Monday, following press comment.
The FTSE 250 company said a transaction, if completed, would be funded from NewRiver's existing resources. "There can be no certainty that a transaction will be concluded and a further announcement, as appropriate, will be made as soon as practicable," it said.