London pre-open: Stocks seen weaker as investors eye ECB, Sino-US relations

London stocks were set for losses at the open on Thursday, taking their cue from a downbeat session in the US as investors eyed the latest policy announcement from the European Central Bank and any developments in Sino-US trade relations.

The FTSE 100 was called to open 36 points lower at 7,160.

CMC Markets analyst David Madden said: "Equity traders will be paying close attention to the European Central Bank (ECB) update today, as yesterday it was reported the central bank are looking into launching another round of targeted lending. The report nudged stocks higher yesterday in the afternoon, but the major indices finished the day in the red."

The ECB is widely expected to hold rates when it makes its announcement at 1245 GMT. The press conference with ECB chief Mario Draghi will be in focus at 1330 GMT.

Investors will also be mulling news that Chinese tech company Huawei has filed a lawsuit against the US government over the ban that restricts federal agencies from using its products.

On the UK data front, Halifax house prices for February are at 0930 GMT.

In corporate news, Melrose Industries said its results for 2018 are ahead of the board's previous expectations eight months after acquiring GKN.

On a reported basis for the calendar year the FTSE 100 group generated £8.6bn of revenues, but swung to a loss before tax of £550m and earnings per share of 12p after the acquisition was completed last April.

But on an annualised adjusted basis, as if GKN has been there for a full year, revenues of £12.25bn produced an adjusted operating profit of £1.1bn and adjusted diluted earnings per share up 36% to 13.3p.

Spirax-Sarco Engineering posted a jump in 2018 profit and revenue thanks to strong organic growth and contributions from acquisitions.

Adjusted pre-tax profit rose 11% to £254.6m on revenue £1.15bn, up 15% on the year.

National Grid has entered into an agreement to acquire clean energy developer based in Minneapolis, Geronimo Energy.

The energy infrastructure group said it agreed to pay $100m, with potential further payments subject to the successful development of the project pipeline. Additionally, National Grid said it was progressing an agreement to acquire a 51% share in 378 MW of solar and wind generation projects developed by Geronimo for $125m.