London pre-open: Stocks set to rise despite another slide in oil futures
Equity indices in the UK are being called to begin the session trading slightly higher on the back of a small rise in the Chinese currency and despite another leg lower in crude futures.
The Footsie is seen starting the day about 16 points higher from Friday close of 5,804.10.
Acting as a backdrop, analysts are still trying to determine the implications of the past two week’s very poor start to trading in global capital markets in 2016.
“In such an asset price sensitive global economy a prolonged period of panic will likely hit business and consumer confidence and with the global economy already weak it could tip us into a recession. So to avoid it we need some stability over the next few weeks,” said Deutsche Bank’s Jim Reid in a research note sent to clients on Monday morning.
In Asia, the Shanghai Stock Exchange’s Composite Index edged higher by 0.44% to 2,913.84.
The offshore yuan strengthened +0.5% on Monday morning after news that China will raise offshore yuan reserve requirements for banks.
Heading in the other direction, as of 07:38GMT front month Brent crude futures were 2.7% lower to $28.15 per barrel on the ICE after the International Atomic Energy Agency said Iran had met its commitments regarding curbs on its nuclear programme.
On Saturday, IAEA Director General Yukiya Amano gave the UK, European Union and US the ‘green light’ to lift their sanctions on the Central Asian country.
US markets were to remain closed on Monday in observance of Martin Luther King Jr.’s birthday.
Homebase hived off to Aussies
Home Retail Group has agreed to sell its Homebase division to Wesfarmers, one of Australia’s biggest retailing groups. The FTSE 250 company announced the formal agreement worth £340m after confirming last week it was in talks to make a sale. Shareholders are set to receive around £200m in the deal, which is expected to be completed by the end of March.
Amec Foster Wheeler’s chief executive Samir Brikho is stepping down from his role, the oil and gas engineer announced alongside a very brief trading update. Chief financial officer Ian McHoul has been appointed to the role of interim CEO with immediate effect and will chair the group leadership team while the search for a new chief executive is conducted.
Wolseley said chief executive Ian Meakins would retire on 31 August 2016 to be replaced by chief financial officer John Martin. Meakins joined the plumbing and heating and building products distribution business in July 2009. Simon Nicholls will replace Martin as CFO, joining Wolseley from Cobham, a technology company specialising in aerospace, defence and communication.