London pre-open: Stocks seen flat after China data

London stocks looked set for a flat open on Monday following the release of uninspiring Chinese trade data which showed both exports and imports fell more than expected.

The FTSE 100 was set to open unchanged at 6,793.

According to data released earlier by the General Admission of Customs, exports in the world’s second-largest economy fell 4.4% in July, while imports declined 12.5%.

At the same time, investors are likely to continue mulling over Friday’s strong non-farm payrolls report, which has added weight to expectations of a rate hike from the Federal Reserve this year.

CMC Markets’ Michael Hewson said: “Certainly the odds have gone up that we could get a move, which suggests that this month’s Jackson Hole Symposium on 26 August is likely to be a key bellwether for the Fed’s appetite for a move higher, or whether the lack of inflation could stay there hand.

“Fed Chief Janet Yellen is due to speak there so she could, like her predecessor Ben Bernanke was so fond of doing use it as a forum to signal any potential moves on policy next month.”

There are no major UK data releases due.

In corporate news, first-half results from Shire confirmed the drugmaker's strong performance so far in 2016, completing two acquisitions and continuing to grow its underlying business.

Just a week after it published second-quarter results, Shire posted interim numbers that showed total reported product sales up 36% to $3.9bn, thanks to double digit product sales across all legacy businesses and $559m of product sales from almost one month from the newly acquired Baxalta. Earnings before interest, tax, depreciation and amortisation rose 35% on the previous year to $1.9bn.

Support services and construction group Interserve has been awarded a two-year extension of its contract to provide security services to the BBC worth more than £20m.

Interserve has been providing the BBC with security services since 2014, when it was awarded the company’s National Security Contract on a three-year deal.

Global medical technology business Smith & Nephew announced on Monday that it has completed the divestiture of its gynaecology business to Medtronic, for $350m.

The FTSE 100 firm said the sale of its gynaecology business demonstrates its “disciplined strategic approach” to capital deployment.

“Our shareholders will benefit directly through a $300m share buy-back programme,” Smith & Nephew’s board said in a statement.

“The divestment is expected to be broadly neutral to adjusted earnings per share in 2017, after the share buy-back, and to reduce EPSA by less than one cent in 2016.”