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

London stocks were set to rise at the open on Monday following a positive session in Asia.

The FTSE 100 was called to open 35 points higher at 7,194.

CMC Markets analyst Michael Hewson said: "Despite a decent rebound on Friday, European and US markets both found themselves finishing the week lower, as sentiment ebbed and flowed on a day-to-day basis.

"While the rebound on Friday was a welcome relief, it didn’t change the fact that markets are increasingly pricing the prospect that the global economy is heading for a sharp slowdown, and that the overall trend remains one of selling rebounds.

"Today’s European open looks set to continue this firmer theme, with a slightly weaker US dollar helping to support sentiment, as commodity prices also rebound from recent lows."

In corporate news, Direct Line Insurance has revised its combined operating ratio target range to 96-98% after a spike in motor claims inflation.

"We have already taken actions including increasing prices and deploying new pricing capability to restore margins, which mean we expect our 2023 combined operating ratio will improve to around 95% and we reiterate our medium-term target range of 93-95%," the company said.

Public relations and advertising giant WPP has acquired Latin American ecommerce agency Corebiz for an undisclosed sum as part of an effort to strengthen its digital commerce capabilities in the region.

WPP said the acquisition was aligned with its accelerated growth strategy, building on existing capabilities in the areas of commerce and technology.