London pre-open: Stocks seen muted ahead of Budget

London stocks were set for a muted open on Monday following losses at the end of last week, as investors eyed the Budget.

The FTSE 100 was called to open flat at 6,939.

CMC Markets analyst David Madden said: "Philip Hammond, the Chancellor, will deliver the budget later today and dealers will be listening out for any potential change of policy regarding housing, business rates, VAT, and pension contributions. Some traders are wondering if the help-to-buy scheme will be extended, and there is chatter of higher stamp duty on foreign investors looking to purchase a property in the UK.

"There is speculation Mr Hammond could help out high street retailers by reducing business rates. Off-shore gaming companies could be targeted by higher tax. This will be the last budget before Brexit, and Mr Hammond confirmed that a ‘no-deal’ Brexit would require a new budget. "

Ahead of the Budget at around 1530 GMT, net lending to individuals, consumer credit and mortgage approvals data are due at 0930 GMT.

In corporate news, HSBC reported stronger profit growth than expected for the third quarter as all three of the bank's main businesses enjoyed good growth and progress was made with cost cutting efforts.

Profit before tax for quarter of $5.9bn was 28% higher than the same quarter last year, with adjusted PBT up 16% to $6.2bn.

Rio Tinto said a non-binding 2016 agreement for Aluminum Corp of China (Chinalco) to acquire the company’s stake in the Simandou iron ore project in Guinea had lapsed.

“Rio Tinto and Chinalco...will continue to work with the government of Guinea to explore other options to realize value from the world-class Simandou iron ore deposit,” Rio said in a statement.

The miner holds 45.05% of the project, with Chinalco (39.95%) and the Guinea government 15%.