London pre-open: Stocks set to retreat from four-month high

UK markets were expected to open the new week on the back foot as investors exercised caution after some big gains over previous sessions.

It's set to be a busy week, with policy decisions due from both the Federal Reserve (Wednesday) and Bank of England (Thursday), though Monday's session will be relatively quiet when it comes to economic data.

The FTSE 100 was expected to open 0.3% lower, according to IG Group futures data, after hitting 7,711.38 on Friday following a 3.1% rise last week. The index hasn't closed above this level since 23 May.

The only major noteworthy economic release out Monday was the Rightmove House Price Index in the UK, which showed that house prices nudged up just 0.4% in September, following a 1.9% fall in August. The rise was below average for this time of year. Year-on-year prices fell 0.4%, building on August’s 0.1% decline and the biggest annual dip since March 2019.

In company news, paper and packaging group Mondi said it had sold its last remaining facility in Russia to Sezar Invest for 80bn roubles (€775m). Both the Russian Federation’s Federal Anti-Monopoly Service and Government Sub-Commission for the Control of Foreign Investments have approved the sale, Mondi said in a statement on Monday. Western companies have exited Russia after sanctions were imposed in response to Moscow's unprovoked invasion on neighbouring Ukraine.

GSK announced that the US FDA has approved ‘Ojjaara’, or momelotinib, for the treatment of intermediate or high-risk myelofibrosis in adults with anaemia. The pharma giant said it was the first and only approved treatment for both newly-diagnosed and previously-treated myelofibrosis patients with anaemia.