London pre-open: Stocks expected to bounce back

The FTSE 100 is seen starting 67 points higher at 6,103.

“It was the admission by Mr Draghi during the press conference that policymakers were concerned about pushing rates too low, due to concerns about the effects on bank balance sheets that prompted a sharp turnaround in the euro and unwound the initial gains in equity markets,” said CMC Markets’ Michael Hewson.

“This tacit admission that the bank appeared constrained by a lower bound for rates put a floor under market expectations for further rate cuts, and while Mr Draghi didn’t rule out further rate reductions, and said rates were likely to remain low for some time, it seemed quite apparent that they were well down the list of possible next moves.”

On the data front, UK trade balance and construction output figures are due at 0930 GMT. In the US, the import price index is at 1330 GMT.

Old Mutual to split into four businesses

Old Mutual Group will separate its four underlying businesses - Old Mutual Emerging Markets (OMEM), Nedbank, Old Mutual Wealth (OMW) and OM Asset Management (OMAM) - and wind itself up.

Apart from confirming that it will reduce its stake in Johannesburg-listed Nedbank, the FTSE 100 group said it had a range of options available to complete the route to a final separation it anticipated by the end of 2018.

FTSE 250 pub company JD Wetherspoon saw more cash come across its bars in the first half of its financial year, with revenue up 6.2% to £790.3m from £744.4m, and like-for-like sales up 2.9%.

The company's operating profit was down by 10.8% in the 26 weeks to 24 January, however, to £49.4m, with profit before tax dipping 3.9% to £36m. Underlying earnings per share were down 16.6% to 19.1p.

At the same time, chairman Tim Martin highlighted the tax disparity between supermarkets and pubs, calling for a level playing field, and attaching a letter to the interim results outlining why he supports Brexit.

Landscape products group Marshalls has posted a 57% rise in pre-tax profits to £35.3m on the back of an 8% jump in revenue to £386.2m.

Martyn Coffey, chief executive, said, trading conditions remained positive and the group continued to experience positive order intake and sales growth across the business.

"Whilst there remain political and economic uncertainties, the outlook remains good...2016 has started well with order intake up 6% against strong comparators and the group is well placed to build on the strong momentum generated in 2015 as we continue to see the combined benefits of Marshalls' operational gearing and the group's growth strategy."