London pre-open: Stocks seen higher on positive Asian cues

Stocks in London were set for a slightly higher open on Monday following positive Asian cues.

The FTSE 100 was called to open 13 points higher than Friday’s close at 6,788.

CMC Markets’ Jasper Lawler said: “European markets look set for a higher open on Monday. It could be another week in which politics ‘Trumps’ economics as a main driver of the action.

“Stock market gains harder to come by in last few days with rising bond yields and a drop in commodities outweighing the enthusiasm of a unified and pro-business US government. Interest in president elect Donald Trump’s team selection in the States will be matched in Europe with the British government issuing its Autumn Statement and the first round of French Republican party primaries for its Presidential election.”

There are no major UK data releases due on Monday but investors will be eyeing the Autumn Statement on Wednesday.

In corporate news, GlaxoSmithKline has filed a US regulatory submission for a new three-drug inhaler treatment for patients with chronic obstructive pulmonary diseases such as chronic bronchitis and emphysema.

The filing was achieved around 18 months earlier than originally planned, with a regulatory submission in the EU also planned in the coming weeks, the company said.

Technical products supplier Diploma said full year pre-tax profits rose 4% to £54m on the back of a rise in revenue to £382.6m from £333.8m.

The total dividend jumped 10% to 20p a share.

Acquisitions completed during the year contributing £16.3m and currency movements boosting the revenues of overseas businesses when translated into sterling by £13.8m, when compared with last year, the company said.

As well as reporting worse profits for the first half and cutting its dividend, facilities management group Mitie said the second half should see an improvement but the full year turnout will fall short of expectations.

As chief executive Ruby McGregor-Smith steps down in December, the company has already taken the decision to withdraw from the domiciliary healthcare market and has placed this business under strategic review.

US science and technology developer Allied Minds has created a new subsidiary, Vatic Materials, which has agreed to license certain technologies from Pennsylvania State University.

Vatic Materials will focus on developing materials and fabrication processes for transparent conducting thin films, such as on touch screens, lighting and photovoltaics, which will allow conductive surfaces to be potentially thinner and more cost effective.