London pre-open: Stocks seen lower as oil prices rise
London stocks were set to edge down at the open on Monday as oil prices rise, with all eyes still firmly on the Russia-Ukraine conflict.
The FTSE 100 was called to open 10 points lower at 7,394.
CMC Markets analyst Michael Hewson said: "European markets look set to open lower, taking their cues from a quiet Asia market session which has seen Chinese markets slip back, and oil markets move higher after Houthi rebels targeted various Saudi Aramco oil and gas sites across Saudi Arabia over the weekend.
"Some production was temporarily disrupted, with the attack another unwelcome reminder of the uncertainty currently affecting global oil markets at this time."
As far as the Ukraine conflict is concerned, Hewson said: "While markets appear to be focussing on the fact that peace talks are taking place, there is also little evidence that they are actually leading anywhere, given the distance between the two sides in respect of what they will accept, with Ukrainian President Zelensky saying at the weekend that Ukraine wouldn’t give up Lugansk or Donetsk in the east of the country.
"These comments would suggest that a ceasefire remains some way away, let alone any kind of resolution, and with the added increasingly hostile rhetoric coming from Russia’s President Putin, the bloodshed looks set to continue."
In corporate news, fintech group Plus500 has entered into the "substantial Japanese retail trading market" with its acquisition of type 1 financial instruments business operator EZ Invest Securities.
Plus500 said the acquisition represented "a major growth opportunity" for the firm, stating it will further strengthen its strategic position as a global multi-asset fintech group by diversifying its geographic footprint through an immediate presence in the Asian nation.
Consumer products giant PZ Cussons said it had bought UK baby and child personal care company Childs Farm for £36.8m.
The company said Childs Farm founder Joanna Jensen had bought back an 8.1% stake in the purchased business and Cussons would buy this back by May 2025 for up to £32.5m.