London pre-open: Stocks seen up ahead of ECB policy announcement
London stocks were set to rise at the open on Thursday following a positive session on Wall Street, as investors eyed the latest policy announcement from the European Central Bank.
The FTSE 100 was called to open around 25 points higher.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The market’s reaction to ECB decision and the post-decision presser could be mixed. A rate cut today, a dovish message from the ECB and another 25bp cut in December are already widely priced in.
"Lagarde's tone at the post-decision press conference will play a crucial role in determining whether the euro will further weaken against the dollar. We could see a buy-the-rumour-sell-the-fact reaction to today’s decision if Lagarde highlights risks regarding the softening inflation."
The ECB rate announcement is due at 1315 BST.
In corporate news, Chemring said in an update that its performance remained in line with analyst expectations, supported by a robust order intake of £638m and an order book of £1.1bn as of 30 September.
The FTSE 250 company said its countermeasures and energetics division was seeing strong demand, with 95% of expected 2025 revenue already covered by orders, while significant progress was being made in long-term projects, including a feasibility study for a new explosives facility in Norway.
Additionally, the sensors and information sector, led by Roke, had secured a number of electronic warfare contracts in multiple regions.
Pest control services group Rentokil Initial held on to full-year guidance following a profit warning last month, as it reported a steady third quarter with revenues unchanged year-on-year at £1.38bn.
However, on an organic basis, the top line improved by 2.6%, as strong performances in Europe, the UK and Asia offset milder growth in North America after a subdued summer.
The company said that actions in North America to increase organic growth and rebalance the cost base have been "strengthened" since the September trading update.
Gambling and gaming group Entain boosted its full-year outlook after third-quarter numbers came in ahead of expectations.
"As a result of a stronger-than-expected third-quarter performance, and increased confidence for the balance of the year, full-year online proforma NGR growth is now expected to be mid-single digit positive on a constant currency basis," it said.
"As such, group earnings before interest, tax, depreciation and amortisation is expected to be towards the top end of our £1.04bn to £1.09bn guidance range."