London pre-open: Stocks seen touch lower as investors eye Fed

The FTSE 100 is expected to open four points lower than Friday’s close at 5,948.

“Global markets sold off sharply last week after sliding oil prices renewed fears that demand is slipping, just as the world’s largest economy is about to raise interest rates from zero,” said Jasper Lawler, market analyst at CMC Markets.

“The FTSE 100’s sensitivity to commodity prices has seen the index give up almost all its gains since the end of September. Despite Mario Draghi disappointing at the last ECB meeting, Germany’s DAX index has only given up just over half its gains in expectation of ECB stimulus since the September lows.”

He added that the price of oil price will likely play a big role in whether stock markets finish up or down in the days preceding the Federal Reserve decision on Wednesday evening.

Shell/BG deal gets China approval

Royal Dutch Shell said its planned £55bn merger with BG Group has received unconditional merger clearance from the Chinese Ministry of Commerce (“MOFCOM”).

The green light comes after similar approvals in Brazil, the EU and Australia. MOFCOM clearance marks the final pre-conditional approval required for the combination.

“We’re grateful to MOFCOM for its thorough and professional review of the recommended combination, and I am delighted we now have all the pre-conditional approvals needed to move to the next important phase,” said Shell CEO Ben van Beurden.

“This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time. We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016.

Diageo has appointed Guinness Nigeria as its exclusive distributor of its international premium spirits brands.

The FTSE 100 drinks company announced on Monday that Guinness Nigeria, in which Diageo has a 54.3% shareholding, will become the exclusive distributor of its international premium spirits brands from 1 January 2016.

In the year ended 30 June 2015, Diageo's international premium spirits net sales in Nigeria were £20m.

Media company WPP has agreed to merge its Australian and New Zealand businesses with STW Communications Group and increase its shareholding from 23.6% to 61.5%.

The transaction will be structured through a contribution of WPP's Australian and New Zealand businesses into STW, for an enterprise value of A$512m, with consideration consisting of the issue to WPP of new STW shares and a shareholder loan.