London pre-open: Stocks seen lower as volumes thin out before Easter weekend

London stocks were set for a weaker open on Thursday, with volumes likely to be thinner than usual as we head into the long Easter weekend.

The FTSE 100 was called to open 24 points lower at 7,020.

Michael Hewson, chief market analyst at CMC Markets, said: "US markets were unable to shake off the jitters around the tech sector closing lower on the day, as the tech juggernaut that has powered most of the gains in the US over the past two years, appears to be starting to misfire quite badly, with some of the biggest decliners from that sector, the so called FANG stocks of Facebook. Amazon, Apple, Netflix and Google.

"Concerns about disruptions in global trade, slowing economic activity, and now worries about the tech sector being the target of regulatory changes, and higher tax rates, has provided a perfect storm of uncertainty and doubt into investors psyche, replacing the complacency that was so prevalent at the beginning of the year."

On the data front, net lending to individuals, fourth-quarter GDP, consumer credit, mortgage approvals and total business investment are all due at 0830 BST.

The final iteration of Q4 GDP is expected to show that the UK economy grew at 0.4% on a quarterly basis, rising to 1.4% on an annualised basis, with services once again contributing most to the headline number. Meanwhile, business investment is expected to remain unchanged at 2.1% year on year.

Before that, investors will be digesting the latest survey from GfK, which showed the UK consumer is feeling slightly more confident about personal finances and the general economic situation as recent improvements in wage growth and inflation boost spirits.

The long-running consumer confidence index from GfK climbed three points over the month of March but still remained negative at -7, worse than at this stage last year.

However, all five of the constituent measures improved in March compared to February and January.

"Spring is in the air," said GfK's Joe Staton, pointing to improvements in consumers' views on personal finances, the general economy over the last year and next year, and on current major purchase intentions.

The general economy measures both remain firmly in the negative, however. Consumers' view of the past 12 months rose three points to -26 and for the coming 12 months increased four points to -22.

"The prospect of wage rises finally outstripping declining inflation, high levels of employment with low-level interest rates, and finally some movement on the Brexit front appear to have boosted our spirits," Staton said.

In corporate news, NEX Group has agreed to be taken over by CME Group for 1,000p per share in cash and shares of the Chicago exchange giant.

CME will pay 500p in cash and 0.0444 new shares for each NEX share, which values NEX at £3.9bn, based on the closing price of CME stock overnight of $158.84.

Shire has gained regulatory acceptances from the EU and Canada for its lanadelumab treatment for hereditary angioedema.

The European Medicines Agency has validated Shire’s marketing authorisation application for lanadelumab and Health Canada has accepted a new drug submission under priority review for the treatment.

Smurfit Kappa upped its stakes in water sustainability on Thursday, by joining the UN Global Compact’s CEO Water Mandate.

The packaging firm said the mandate was designed to address the growing crisis in water and sanitation in many parts of the world by implementing a range of strategies and policies. Through the initiative, Smurfit Kappa would be collaborating with global brands including ABInBev, Danone, Heineken and Unilever to identify, explore and solve water challenges.

Moneysupermarket has agreed to buy home communications and mobile phone comparison business Decision Tech for £40m.

The company said the deal is a “strong fit” with the strategy of reaccelerating core growth and driving new market growth.