London pre-open: Stocks seen up but quiet day expected

London stocks were set to rise at the open on Monday, but trade was expected to be fairly quiet with US markets closed for a public holiday and little in the way of corporate news to provide any direction.

The FTSE 100 was called to open 22 points higher at 8,026.

CMC Markets analyst Michael Hewson said: "Today looks set to see markets in Europe open modestly higher against a backdrop of continued weakness in energy prices, which is relieving some of the worst case economic scenarios that were being modelled at the end of last year.

"It’s also likely to be a relatively subdued session given the absence of the US due to the President’s Day holiday."

On the corporate front, retailer Frasers Group said it was starting an £80m share buyback.

Frasers, controlled by Mike Ashley and owner of Sports Direct, said the repurchase would be used to reduce the company’s share capital, adding that it would run until April 30.

Elsewhere, cyber security firm Darktrace said it has appointed Ernst & Young to provide an additional independent third-party review of its key financial processes and controls following recent short seller attacks.

Chair Gordon Hurst said: "The board believes fully in the robustness of Darktrace's financial processes and controls.

"As a sign of that confidence, we have commissioned this independent third-party review by E&Y. We look forward to the outcome of this review."