London pre-open: Markets expected to open lower as Asia falls again

City sources predict the FTSE 100 will open 217 points lower than Friday’s close of 6,187.65.

CMC Markets said expectations of easing from Chinese policymakers over the weekend were misplaced, despite massive falls in the markets last week.

The continued sell-off in Asia, combined with a plunging oil price, and further uncertainty in Europe was a “recipe for a big cocktail of uncertainty,” said analyst Michael Hewson.

This week, focused was likely to be on the US Federal Reserve’s annual central bank symposium in Wyoming on Thursday, although second quarter GDP data from Germany, the UK and the US are all due, CMC Markets said.

Stocks to watch

Online gambling operator GVC Holdings claims it has made "significant progress" in bid talks with larger rival Bwin.party after making a larger proposal for the company last week. Bwin confirmed that discussions on "certain aspects" of the proposal were ongoing but said until these were resolved its previous unanimous recommendation of a second offer from 888 Holdings remained in place.

Engineer Costain has won a £605m joint-venture contract to carry out construction of the major Thames Tideway Tunnel sewer in London. Costain has a 40% share of the joint venture and the project will begin immediately and was expected to complete in 2023.

Aerospace, defence and engineering company Meggitt has been awarded a $25m contract to provide in-service support to the Canadian armed forces. The contract, which was awarded by Public Works Government Services Canada on behalf of the Department of National Defence is for three years and was won by Meggitt Training Systems (Quebec) Inc. It began last month and includes operator and maintenance support for related training activities, incorporating onsite support for health, usage and equipment monitoring at major bases across Canada.

In the press

The Government’s “business tsar” has backed an emphatic call from the nation’s retailers for a fundamental reform of business rates to boost Britain’s productivity. Sir Charlie Mayfield, chairman of the John Lewis Partnership and president of the British Retail Consortium (BRC), has thrown his weight behind a chorus of complaints from the bosses of Britain’s high street traders that the hefty business rates tax is hampering investment in the sector. - The Daily Telegraph

The boss of Clydesdale Bank has denied suggestions that its £2.5 billion stock market listing could be in trouble as he confirmed that the Australian-owned lender had already held talks with more than 20 key investors. David Duffy, the chief executive of Clydesdale and Yorkshire banks, said that he was confident the lender was safely on course to complete its IPO by January at the latest, amid speculation that some fund managers had balked at the potential price of shares in the bank. - The Times

In its latest health check of the economy, and in advance of the chancellor’s spending review in November, the CBI upgraded its estimate for growth this year from 2.4 per cent to 2.6 per cent, and from 2.5 per cent to 2.8 per cent for next year. If these figures materialise, it will mean that growth will average 0.7 per cent a quarter until the end of next year and will beat the Office for Budget Responsibility’s forecast for growth of 2.4 per cent and 2.3 per cent respectively for this year and next. - The Times