London pre-open: Strong gains expected ahead of busy week

UK stocks are expected to rise for the fourth straight day on Monday as investors shake off recent concerns about monetary policy tightening and geopolitics ahead of a busy week for economic data and corporate earnings.

The FTSE 100 is being called to open around 70 points (+0.9%) higher than Friday's close of 7,895.85 as it continues to edge closer to the 8,015.63 record closing high reached earlier this month.

The economic data schedule looked relatively light on Monday, with eurozone consumer confidence and the Chicago Fed National Activity Index the only major releases of the session. However, things will pick up later in the week as US corporate earnings get into full swing, along with some important economic indicators.

Tuesday will also see a barrage of manufacturing surveys across Europe, the UK and US, followed by key US GDP and inflation figures on Thursday and Friday, respectively. Meanwhile, tech blue chips Tesla and Meta will report their latest quarterly figures in the coming days.

"It’s a big week for US earnings and economic data, the question for investors is whether renewed signs of economic strength is bad news for stock markets," said Kathleen Brooks, research director at XTB.

"While most global indices recorded a weekly decline [last week], the FTSE 100 was the most resilient global index, highlighting its defensive qualities that can perform well when volatility rises," Brooks said.

In UK company news, global professional services business JTC said it had bought JP Morgan Chase subsidiary First Republic Trust Company of Delaware for $21m. FRTC-DE is a provider of trust administration services to high-net-worth individuals and is headquartered in Wilmington, Delaware. The company has approximately $9bn of assets under administration by market value, JTC said.

Mobico Group reported continued revenue growth in its 2023 results, driven by increased passenger volumes, route recovery, and pricing strategies, despite inflationary pressures. Profitability was impacted by inflation and a £105m reduction in Covid-related support, resulting in adjusted operating profit of £168.6m, down from £197.3m. The company, formerly known as National Express, said it expected further benefits from pricing and restructuring going forward, with a projected 2024 adjusted operating profit in the range of £185m to £205m.