London pre-open: Stocks seen muted as attention shifts to inflation
London stocks were set for a muted open on Monday as investors shift their attention from the US jobs report to the inflation outlook.
The FTSE 100 was called to open unchanged at 7,095.
CMC Markets analyst Michael Hewson noted a warning over the weekend from external MPC member Michael Saunders, who said that markets were right to start betting on faster rate rises, due to surging energy markets and labour shortages.
"He isn’t alone in thinking along these lines either after new Chief economist Huw Pill voiced concerns over longer lasting inflation, something that the UK tends to be especially vulnerable to, while Governor Andrew Bailey also appears to be leaning in that direction as well," said Hewson.
In corporate news, power control components company XP Power said the "strong momentum" in order intake accelerated in the third quarter, with orders up 87% at constant currency and 73% as reported to £97.2m.
The FTSE 250 company said its order growth was driven by continued strength in the semiconductor manufacturing equipment sector, the ongoing recovery in industrial technology, and a pick-up in healthcare, where third quarter orders were 70% above 2019 levels. As expected, revenue of £61.6m in the quarter was down 5% on a constant currency basis as the exceptional Covid-19-related healthcare revenue in the prior year was not repeated.
AstraZeneca said its antibody cocktail to combat Covid-19 had achieved a “statistically significant reduction” in the virus or death in a phase 3 trial.
The drug, known as AZD7442, met the primary endpoint, reducing the risk of developing severe Covid-19 or death (from any cause) by 50% compared to placebo in outpatients who had been symptomatic for seven days or less.
In a prespecified analysis of participants who received treatment within five days of symptom onset, AZD7442 reduced the risk of developing severe Covid or death from any cause by 67% compared to placebo.
Astra's biotech compound contains lab-made antibodies designed to stay in the body for months to contain the virus in case of an infection.