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(Alliance News) - London's FTSE 100 is called to open a touch higher on Monday, ahead of an interest rate decision in the eurozone and a US inflation reading later in the week.
US stocks had shone at the end of last week, registering strong advances on the back of a robust jobs report. According to the Bureau of Labor Statistics, US nonfarm payroll employment rose by 303,000 in March, higher than the FXStreet-cited consensus of 200,000. The figure for February was revised down by 5,000, from 275,000 to 270,000.
A reading on Wednesday is expected to show that the rate of US annual consumer price inflation picked up to 3.4% last month, from 3.2% in February, according to FXStreet cited consensus.
"Wednesday's release isn't the final inflation update the Fed will receive before the next policy gathering. The upcoming release of [personal consumption expenditures] prices on April 26 will also be on their radar. However, it would be exceedingly beneficial if CPI could show some semblance of cooperation for the next month or two," SPI Asset Management analyst Stephen Innes commented.
On Thursday, the European Central Bank is expected to leave interest rates unmoved, but eyes will be on whether President Christine Lagarde gives anything away on rate cut timing.
In early UK corporate news, drugmaker AstraZeneca hailed data in its rare neurological diseases portfolio, miner Rio Tinto named a new commercial chief, while Veterinary services provider CVS Group flagged a cyber incident which has hit its UK operations.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 0.1% at 7,919.66
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Hang Seng: up 0.4% at 16,781.68
Nikkei 225: up 0.9% at 39,347.04
S&P/ASX 200: up 0.2% at 7,789.10
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DJIA: closed up 307.06 points, 0.8% at 38,904.04
S&P 500: closed up 1.1% at 5,204.34
Nasdaq Composite: closed up 1.2% at 16,248.52
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EUR: flat at USD1.0831 (USD1.0831)
GBP: up at USD1.2625 (USD1.2621)
USD: up at JPY151.81 (JPY151.54)
GOLD: up at USD2,336.42 per ounce (USD2,325.89)
(Brent): down at USD89.69 a barrel (USD91.31)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
16:30 BST UK Bank of England Deputy Governor Sarah Breeden speaks
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UK Deputy Prime Minister Oliver Dowden has hinted that a January 2025 election is possible, after the prime minister Rishi Sunak insisted he is preparing for a poll in the second half of this year. Dowden said 2024 "almost certainly is an election year" as he faced questioning on Sunday, suggesting the prospect of a later date has not been ruled out. Sunak has said he intends to call an election in the second half of the year, with October or November seen by many as the favoured period. The latest possible date he could delay the poll until is January 28, 2025. Dowden signalled the possibility of a date early next year as he faced questions from Sky News' Sunday Morning with Trevor Phillips about the Labour Party's current polling lead over the Conservatives.
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The UK would stop arms sales to Israel if it was found to be in breach of international law, Dowden has suggested. The deputy prime minister said the UK would not "supply those arms" if it was unable to legally do so. It comes amid mounting pressure on ministers to reveal what legal advice they have received on continuing arms exports to Israel. Dowden said the Israelis had made "big mistakes" during the war, but would not be drawn into revealing the content of advice to ministers. Foreign Secretary David Cameron suggested the UK's support for Israel is not unconditional. He placed further pressure on Israeli Prime Minister Benjamin Netanyahu after the killings of three British aid workers in an air strike by the Israel Defence Forces. Writing in the Sunday Times six months on from the October 7 Hamas attack which sparked the conflict in Gaza, Cameron issued a warning over Israel's compliance with international law.
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Simon Harris, who is set to become Ireland's youngest ever prime minister, said Irish unification was a "legitimate political aspiration" but not a priority for him as leader. The 37-year-old was appointed leader of the centre-right Fine Gael party leader last month after the shock resignation of his predecessor Leo Varadkar. A vote to confirm Harris as taoiseach, which he is expected to win, will be held in the Irish parliament on Tuesday. Harris has said his main focus will be on "law and order", crafting a "more planned and sustainable" immigration policy and fighting "against the dangers of populism". On unification, he said he understood the desire of some to see a united Ireland but that this was not "my focus or priority is now".
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BROKER RATING CHANGES
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RBC raises JD Sports Fashion price target to 150 (135) pence - 'outperform'
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HSBC cuts Rentokil to 'hold' (buy) - price target 480 (495) pence
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COMPANIES - FTSE 100
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AstraZeneca and Daiichi Sankyo on Saturday announced that the US Food & Drug Administration has approved their cancer drug conjugate for patients with metastatic HER2-positive solid tumours. The news follows the pharmaceutical companies announcing in January that the Enhertu treatment received priority review from the FDA. The companies, which develop the drug together, highlighted that Enhertu now has five approved indications. The newest approval for Enhertu is for adults with unresectable or metastatic HER2-positive solid tumours who have received prior systemic treatment and have no satisfactory alternative treatment options. AstraZeneca on Monday separately said data showed its Ultomiris and Soliris offerings "can transform" patient outcomes in sufferers of rare neurological diseases. Astra will present data from its rare neurology portfolio at the American Academy of Neurology meeting in Denver, Colorado next week. Data will add to the "robust evidence supporting the safety and efficacy" of Ultomiris and Soliris in sufferers of myasthenia gravis and neuromyelitis optica spectrum disorder. Myasthenia gravis causes muscle weakness, while NMOSD affects optic nerves and the spinal cord.
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Miner Rio Tinto named Bold Baatar as its new chief commercial officer, succeeding Alf Barrios. Baatar currently heads up Rio Tinto's copper division. The new role will see him lead Rio Tinto's "commercial and business development activities globally". "In order to ensure a smooth transition, Alf will continue in his role as chief commercial officer until the end of August, and thereafter as chair for China, Japan and Korea, and executive committee member, until his retirement at the end of 2024," Rio Tinto added. Baatar will take on the role from the start of September.
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COMPANIES - FTSE 250
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A Currys shareholder has called on the consumer electronics seller to dispose of its mobile phones division, The Sunday Times reported. JO Hambro said Currys should sell ID Mobile, a unit which provides monthly phone contracts. The Sunday Times said the division is valued at around GBP350 million. Fund manager JO Hambro holds a 4.5% stake in Currys, the newspaper noted. In March, Elliott Advisors announced it will not make an official bid for Currys, after having a roughly GBP750 million proposal. JD.com, another potential bidder for Currys, had also said it would not be making a bid.
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OTHER COMPANIES
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Veterinary services provider CVS Group said it "recently detected and intercepted a cyber incident". It found there was unauthorised access to a "limited number of its IT systems". CVS added: "CVS took immediate steps to isolate the issue and, to prevent wider unauthorised access, took its IT systems temporarily offline, as part of the group's response plan. Our responses to contain the threat of malicious activity have caused considerable operational disruption over the past week, but to date have been effective in preventing further external access to CVS systems." The event has caused disruption in its UK operations, CVS added. It has called on consultants to prove the "nature and extent of the incident". CVS said IT services have been restored across most of its estate, but cautioned that "some systems are not working as efficiently as previously". Operations outside the UK are "operationally unaffected", it added.
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European Green Transition will begin trading on AIM on Monday. The company, which intends to invest in a portfolio of green economy assets in Europe, will have a market capitalisation of around GBP14.5 million on admission. It raised GBP6.5 million at a price of 10 pence per share. Chief Executive Officer Aiden Lavelle said: "Today's listing and fundraise is a crucial milestone for EGT. The funds raised will contribute to our existing green economy projects which are intended to support the energy transition across Europe, notably the Olserum rare earth project in Sweden. Additionally, the fundraise will strengthen the company's position to acquire what we believe are distressed and undervalued green economy assets in Europe."
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By Eric Cunha, Alliance News news editor
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