London pre-open: Stocks seen higher after late Wall St bounce

Stocks in London were set to open higher following a late rebound on Wall Street on Friday, as investors prepared to sift through more corporate news.

The FTSE 100 was called to open 32 points firmer than Friday's close at 7,275.

CMC Markets' Michael Hewson said: "While the Dow managed to eke out a positive close for the eleventh day in a row it was hardly a convincing finish given that it spent all but the last five minutes of the entire session in negative territory.

"Nonetheless it was still the longest winning run since 1992 as investors looked ahead to tomorrow’s speech by President Trump to a joint session of Congress.

"For about three weeks now markets have been awaiting further details on the so called “phenomenal” tax plan that the President promised us on the 9th February when he was at a meeting of airline executives. This statement helped push the Dow conclusively through the 20,000 and up another 3% at a time when the Trump trade was beginning to get a little tired."

There are no UK data releases of note due, but in the US, durable goods orders are at 1330 GMT, while pending home sales are at 1500 GMT.

In corporate news, Associated British Foods said it expects "excellent progress" in profits and earnings this year, with growth in all parts of the business in the first half and a further boost from exchange rates.

With total retail sales from its Primark clothing retail arm expected to be 12% ahead for the half-year at constant currencies and 22% ahead at actual exchange rates, guidance for the full year has been maintained.

The London Stock Exchange Group said on Sunday that it did not think its proposed merger with Deutsche Börse will be approved by the European Commission, after competition regulators came up with "unexpected" demands last week.

In a statement, the exchange said: “Based on the Commission’s current position, LSEG believes that the Commission is unlikely to provide clearance for the merger."

Distribution and outsourcing company Bunzl received a boost from the post-Brexit vote slump in the pound as full year pre-tax profits jumped 12% to £362.9m.

More than 85% of the group's revenues are generated outside the UK and the weak pound had a “significant positive translation impact on the Group's reported results, increasing revenue, profits and earnings by approximately 10%", Bunzl said.

Housebuilder Persimmon’s revenue and pre-tax profit for 2016 rose as it remained on track with its growth strategy while it aimed to further increase its capital return plan to shareholders.

Chairman Nicholas Wrigley said that the FTSE 100 company has completed the first five years of its long term strategy to build a “stronger, larger business while maintaining capital discipline and robust free cash generation”, which has enabled Persimmon to return £1.07bn, or £3.50 per share of excess capital to shareholders since 2012.

Global medical technology company ConvaTec Group announced the launch of the me+ recovery programme for stoma patients, including a nurse education course which has been accredited by the Royal College of Nursing in the UK, on Monday.

The group said the me+ recovery programme provided advice and support about the importance of movement and physical activity after stoma surgery.