London pre-open: Stocks seen lower as investors await fresh catalysts

London stocks are set to open lower on Monday as investors look for fresh catalysts at the start of a four-day week.

The FTSE 100 is seen starting 28 points lower than Friday’s close at 6,162.

“The run up to the Easter Bank Holiday weekend is likely to be a quieter one both in terms of trading volumes and major economic events, especially when compared to the 10 days or so that preceded it. That said, there are still some important pieces of economic data that is due out, with a particular focus this week on the UK,” said Craig Erlam, senior market analyst at Oanda.

“This week’s CPI inflation and retail sales figures are therefore going to be followed very closely for signs that the economy is stalling and more assistance is needed from the central bank, a possibility that we’re already hearing murmurings of, despite the rhetoric remaining that the next move is more likely higher than lower for rates.”

Investors will also look to the US towards the back end of the week, with GDP and durable goods data due for release.

Synthomer buys US-based Hexion

FTSE 250 specialty chemicals company Synthomer announced the $226m (£156m) acquisition of Hexion Performance Adhesives & Coatings on Monday morning, to be completed this summer following regulatory approval and other conditions.

The purchase - to be funded through existing cash and additional credit facilities - would strengthen Synthomer's position in the performance adhesives and coatings market by adding Hexion's range of dispersions, additives, powder coatings and specialty monomers.

At the same time, Synthomer's board said it had reached agreement to sell its dispersions business in South Africa to Ferro for £13m, following that division's declining EBITDA and cash flow performance in a competitive market.

Weaker commodity prices hit full year profits at gold miner Centamin, which fell to $58.4m from $81.5m despite a jump in revenue to $508.4m from $472m.

Annual production rose 16% to 439,072 ounces - within the revised guidance range.

Cash operating costs of $713 per ounce was down from $729 per ounce in 2014, mainly due to lower fuel prices, although marginally above guidance $700 per ounce despite higher production than originally forecast.

All-in sustaining costs of $885 per ounce was below our original forecast of $950 per ounce, mainly due to the re-scheduling of certain sustaining capital cost items, as well as the higher production.

Guidance for 2016 is for 470,000 ounces at $700/oz cash operating cost and $900/oz all-in-sustaining cost.