London pre-open: Stocks seen touch lower ahead of ECB

London stocks were expected to open a little lower on Thursday as investors looked to the European Central Bank rate announcement.

The FTSE 100 was set to open seven points weaker than Wednesday’s close at 6,839.

CMC Markets’ Jasper Lawler said: “Stock market trading has been muted so far this week but has the promise of a new spark of life from the European Central Bank. The central will announce its first policy decision since the Bank of England eased policy in August in response to concerns over Brexit.

“There is a chance of some central bank one-upmanship. The ECB could decide it wants to add stimulus in equal measure to the Bank of England to defend the Eurozone from any unwanted economic consequences of Brexit. Since ECB policy is already very accommodative and the BOE has taken some political flak for its decision to ease policy so soon after the referendum, the ECB is unlikely to make major changes. Via a downgrade to the ECB’s economic forecasts, Mario Draghi can hint at more stimulus if needed in the coming months.”

There are no major UK data releases due but the ECB rate announcement is at 1245 BST. In the US, initial jobless claims are at 1330 BST.

Electronics retailer Dixons Carphone posted a trading update for the first quarter on Thursday, with group revenue up 9% year-on-year and like-for-like revenue improving 4% in the 13 weeks to 30 July.

The FTSE 100 firm, which operates the Carphone Warehouse, Currys PC World and Dixons Travel brands among others, said performance in the UK and Ireland was “strong”, with like-for-like revenue up 4%.

Growth in like-for-like revenue was 2% in the Nordics, while Southern Europe delivered an exceptionally strong improvement of 13%, which the firm said was driven by performance in Greece.

Micro Focus International has agreed an $8.8bn deal to merge with Hewlett Packard's software business, which includes a $400m return of value to the FTSE 100 company's' shareholders.

The deal, which Micro Focus expects to enhance adjusted earnings per share by the first full financial year ending after completion, will create one of the world's largest infrastructure software companies.

Multinational electricity and gas utility National Grid and US public utilities regulator New York Public Service Commission have launched a three year rate plan settlement for the KeySpan Energy Delivery New York (KEDNY) and KeySpan Energy Delivery Long Island (KEDLI) gas distribution utilities.

A final decision from the US regulator is expected in late 2016 and the new rates effective from January 2017.