London pre-open: Stocks to open lower on short trading day

The FTSE is expected to open around 6,260 on Thursday from the previous day’s 6,274 as traders prepare for a short day of trading on New Year’s Eve.

UK markets will shut at 1230 GMT and will reopen on Monday. Germany and France are both closed for the day while the US will have normal trading hours.

Oil prices will be in focus again on Thursday after a decline sent equities into the red on Wednesday. Data from the US Department of Energy’s statistical arm showed that in the week ending 25 December, stockpiles of commercial US crude oil rose by 2.6m barrels from the previous week to 487.4m. Analysts had been expecting a drop of 1m barrels.

Meanwhile, comments from the International Monetary Fund’s managing director Christine Lagarde did little to help the overall tone on Wednesday.

In a guest article for German daily Handelsblatt, she said global economic growth will be "disappointing" next year.

"In many countries the financial sector still has weaknesses and in emerging markets the financial risks are increasing. All of that means global growth will be disappointing and uneven in 2016," she said, pointing to low productivity, ageing populations and the effects of the global financial crisis.

There is little on the agenda in terms of company results and economic data apart from the US initial jobless claims report out in afternoon trade.

Sports Direct may move after saying that it will pay its staff the above the national minimum wage, which will cost the company about £10m for the year.

Nu-Oil and Gas reported a wider annual loss on Thursday, reflecting finance costs and exceptional charges. Loss before tax for the year came to £5.2m, compared to the previous year’s £4.8m.