London pre-open: Greek concerns and Chinese trade data to weigh on stocks

Ongoing concerns about Greece and a sharp plunge in imports in China were expected to weigh on UK stocks on Monday.

City sources predict the FTSE 100 will open 35 points lower than Friday’s close of 6,853.44.

Standard & Poor's downgraded Greece's credit rating by one notch and warned of the country's newly-elected government was running out of time to agree on a new financing program with creditors. In a statement released on Friday, the rating agency downgraded Greece to "B-" from "B," with a negative outlook.

Meanwhile, Greek prime minister Alexis Tsipras addressed parliament over the weekend, standing firm on his plans to ease austerity measures in his first major speech since taking his new role.

"After five years of bailout barbarity, our people cannot take any more,” he said.

Meanwhile, the Chinese trade surplus unexpectedly ballooned to $60bn in January from $49.6bn the month before, as imports sank by an annual rate of 19.9%. Exports were also weak, falling by 3.3%.

However, analysts at Capital Economics said the data “is not cause for alarm as it largely reflects the usual volatility ahead of Chinese New Year, along with the fall in global commodity prices which has lowered the dollar value of imports”.

Stocks to watch

Anglo American has revealed that the contribution to underlying profits from its platinum division in South Africa plummeted 92% in 2014 as a result of a five-month strike and lower metal prices. The contribution to its underlying earnings from Anglo American Platinum fell to just $25m in 2014, compared with $287m the year before, though 2013 did benefit from a large tax benefit.

Profits fell 17% at Randgold Resources, as the gold price softened, but the West Africa-focused gold miner has increased the dividend 20% as it maintained strong cash flows. The company increased gold production to record levels, up 26% to 1.15m ounces and reduced costs 2%, ending the year with $100m cash.

Rolls-Royce has won three contracts totalling $442m, producing and supporting LiftSystems for F-35B Lightning ll aircraft. The price includes reductions from previous contracts, according to a note Rolls-Royce sent out to investors on Monday.

Natural gas producer BG Group has brought forward the starting date of its new boss by one month, the company announced on Monday. “[Helge] Lund's start date has been brought forward following agreement last week from his former employer to release him from his contractual commitments,” the company said.