London pre-open: Stocks seen higher as focus turns to Yellen

London stocks were seen opening higher on Monday as expectations of a US rate hike this month are scaled back following Friday’s dismal nonfarm payrolls report.

The FTSE 100 was seen starting 31 points higher than Friday’s close at 6,240.

“The report seriously damaged the chances of a US rate hike at the meeting next week and effectively undid all the Fed’s efforts over the last month or so of guiding the markets towards the real possibility of a summer move,” said Oanda’s Craig Erlam.

“Once again, the markets are now not pricing in a hike until December which goes to show just how little belief there was in a summer move all along. I still believe the Fed will want to raise again this summer which would allow them to go again later on in the year but Friday’s report, combined with more polls in the UK showing increasing support for a Brexit, has probably now taken June off the table.”

There are no major data due in the UK but eyes will be on Yellen’s speech on the economic outlook and monetary policy at the World Affairs Council of Philadelphia’s luncheon at 1730 BST.

EasyJet passenger numbers rise in May

Passenger numbers at low cost carrier easyJet rose 5.7% in May to 6.86m despite 173 cancellations due to French air traffic control strikes and weather conditions.

Load factor for the month fell 0.1 percentage points to 91.5.

Year-on-year passengers were up 7.3% to 71.5m, while the load factor rose 0.2 percentage points to 91.4%.

Passenger numbers are classified as the number of earned seats flown. Earned seats include seats that are flown whether or not the passenger turns up because easyJet is a no-refund airline, and once a flight has departed a no-show customer is generally not entitled to change flights or seek a refund. Earned seats also include seats provided for promotional purposes and to staff for business travel.

Vodafone and Afrimax Group - 4G telecommunications operator in sub-Saharan Africa - have formed a non-equity partnership in Zambia.

Under the deal, the two companies will offer customers high speed 4G data services using the 'Vodafone Zambia' brand.

The roll out of Vodafone Zambia for consumers and businesses will include the opening of Vodafone branded retail stores and kiosks in key locations, bolstered by a network of distributors and resellers and offering a full range of 4G handsets and devices, the two companies said.