London pre-open: Stocks set for muted open as US celebrates Thanksgiving
Stocks in London were set for a muted open on Thursday, with volumes likely to be lower than usual as traders across the pond celebrate Thanksgiving.
The FTSE 100 was called to open two points lower than Wednesday’s close at 6,815.
CMC Markets’ Michael Hewson pointed out that the Dow posted new record highs on Wednesday, while European markets ended in the red.
He said: “This divergence between the almost irrational exuberance being displayed by investors towards US assets and the US dollar is in stark contrast to the reluctance to push money into European stocks, which is more than likely being driven over ongoing concerns about a procession of political worries, starting with next month’s Italian referendum on the 4th December."
There are no major UK data releases due.
In corporate news, Legal & General is to sell its Netherlands business to London-listed pensions firm Chesnara for €160m, the latest disposal in order to consolidate its overseas companies.
The sale of the Dutch arm is expected to improve coverage ratio for the FTSE 100 company and to gain a small profit.
Water company Severn Trent reported interim profits before interest and tax of £299.4m, a rise of 10.8%.
Turnover rose 3.2% to £906.8m. The interim dividend rose 32.6p a share from 32.26p a share.
Turnover for the Regulated Water and Waste Water segment was £765.2m, up from £754.4m and underlying profit before interest and tax rose slightly to £268.9m from £265.4m.
Tying in with Chancellor Philip Hammond's quest to boost British productivity, Rio Tinto chief executive Jean-Sébastien Jacques said the mining giant can boost cash flow by $5m over the next five years by a new "productivity drive".
As well as its existing $2bn cost cutting target for the end of next year, Jacques told investors at an seminar in Sydney the company would prioritise "value over volume" and would drive productivity by "focusing on operational excellence to generate superior shareholder returns through the cycle".