London pre-open: Stocks to rise at start of shortened trading week
London stocks were set to edge higher at the start of the shortened trading week, following upbeat sessions in the US and Asia.
CMC Markets analyst Michael Hewson said: "Last week saw the FTSE 100 post its biggest weekly gain since March, while markets in the US saw the S&P 500 and Dow post their best weeks since November 2020, breaking a run of seven successive weekly losses, as well as wiping out the losses of the previous three weeks.
"More importantly last week’s rebound saw the S&P 500 close above 4,100, while the Nasdaq 100, and DAX broke out of short-term downtrends, a move that looks set to translate into a positive European open this morning.
"It’s probably no coincidence that the rebound currently being seen in equity markets appears to be coming against a backdrop of a weaker US dollar, and declining US treasury yields, with the US dollar falling for the second week in a row, and the US 10-year yield for the third week in succession."
In corporate news, specialist engineer IMI said it planned to buy Germany’s Bahr Modultechnik Holding GmbH for an enterprise value of €98m (£83m).
Bahr will become part of the Industrial Automation Business Unit within IMI Precision Engineering. Closing is expected to take place by mid-June 2022.
Wealth management business Quilter has tapped Glyn Barker to take over as chairman from outgoing chair Ruth Markland, effective from 7 September.
Quilter said that Barker will take a seat in its boardroom as a non-executive director and as a member of its remuneration and its corporate governance and nominations committee effective on 1 June, while Markland will continue as chair of the board until Barker's appointment becomes effective.