London pre-open: Stocks seen steady after muted Asian session
London stocks were set for a quiet open on Monday following a subdued session in Asia.
The FTSE 100 was called to open unchanged at 7,136.
CMC Markets analyst Michael Hewson said: "As we head towards the end of the month and the end of the quarter it is notable that so far in 2021 equity markets look set to complete five successive months of gains, since the modest losses seen in January, with markets here in Europe set for a quiet start this morning, with Asia markets subdued and Hong Kong markets delayed by a rainstorm warning.
"It would appear, on the face of it that investors have recovered some of the confidence that was briefly lost in the immediate aftermath of the most recent Federal Reserve policy decision, although there has been a notable change in the shorter end of the yield curve, with both 2 year and 5-year yields pushing sharply higher, with the rise in the 2-year yield particularly notable, moving up to its highest levels since late March 2020.
"The brief spike in the US dollar that we saw in the aftermath of the Fed policy decision appears to have subsided as concerns about the timeline of US monetary policy were assuaged last week by Fed chair Jay Powell and New York Fed President John Williams."
In corporate news, High Street bakery chain Greggs has reported a stronger than expected recovery in sales from the Covid pandemic since May 10, with like-for-like growth of 1%-3% against the same period in 2019 before the crisis began.
International sports retailer JD Sports Fashion it had bought 80% of Spanish cycling, running and outdoor equipment seller Deporvillage for up to €140.4m.
The deal, conducted through JD Sports’ 50.02% holding company Iberian Sports Retail Group, is being funded through existing cash resources and bank facililties, with €40.4m of the purchase price deferred depending on the performance of the business to the end of the year.