London pre-open: Stocks to rise as investors eye ECB policy announcement

by | Sep 8, 2022

London stocks were set to rise at the open on Thursday following an upbeat session on Wall Street, as investors eyed the latest policy announcement from the European Central Bank.
The FTSE 100 was called to open 23 points higher at 7,260.

CMC Markets analyst Michael Hewson said: “Yesterday saw another choppy session for markets in Europe, with the FTSE 100 finishing sharply lower due to weakness in crude oil prices, which fell to their lowest levels since early February, as concerns over a global recession increased.

“US markets, on the other hand saw a positive finish after the latest Fed Beige Book showed that while growth was slowing, price pressures were also easing in a number of districts. This easing prompted a pullback in the US dollar, as well as a slide in yields.

“Last night’s rebound in US markets, and the weaker US dollar looks set to translate into a positive European open.

“As we look ahead to today’s key events the main one will be the European Central Bank rate decision, along with the latest US weekly jobless claims.”

In corporate news, cybersecurity company Darktrace confirmed that takeover talks with Thoma Bravo have been terminated as the tech investment firm does not plan to make an offer.

News of the terminated takeover talks came alongside Darktrace’s results for the year to 30 June, in which it backed its FY2023 expectations and said it swung to a net profit.

Elsewhere, Primark owner Associated British Foods said that both revenues and profits had improved over the 12 months ending 17 September, driven by price actions, volume increases and the end of certain Covid-19 restrictions.

ABF stated full-year group revenues will be “well ahead” of last year and said it was also on track to deliver a “significant increase’ in adjusted operating profits and adjusted earnings per share.

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