London pre-open: Stocks set for muted start

London stocks were set for a muted open on Monday, with little in the way of corporate or macro news to provide direction.

The FTSE 100 was called to open just five points higher at 7,952.

CMC Markets analyst Michael Hewson said: "As we look ahead to this week the main focus, apart from Wednesday’s ADP, and Friday’s payrolls report, will be on Fed chair Jay Powell’s testimony to US lawmakers tomorrow and Wednesday where he is likely to be quizzed on how he sees the US economy in light of recent strong data, and what measures the Fed might feel inclined to take if the data continues to come in strong.

"It’s unlikely that he will give too many clues given how close to the next meeting we are, and the main takeaway is likely to be data dependence, however, don’t be surprised if markets pore over every single nuance just so that they can reinforce their own particular mindset.

"We do have two other important rate decisions this week, namely from the RBA tomorrow, and the Bank of Canada on Wednesday, where the central bank may have cause to rue their decision to signal a pause at their last meeting given the strength of recent economic data."

In corporate news, shipping services company Clarkson reported a sharp rise in annual earnings, driven by a strong performance in its broking division.

Pre-tax profit for the 2022 calendar year came in at £100.1m, compared with £69.1m a year earlier. The total dividend was lifted to 93p a share from 84p.

"Whilst the global geo-political outlook for 2023 and beyond remains uncertain, the strength of business and balance between supply and demand, supported by our record level of forward order book, gives us confidence in the outlook for Clarksons," said chief executive Andi Case.

"The green transition is an area of key importance for Clarksons as clients recognise the significant steps they need to take towards decarbonisation. Increased environmental regulation and societal pressures will create opportunities across all our divisions for many years to come."

Elsewhere, LXi REIT said it had completed the first stage of its ongoing refinancing with a new, £150m 16-year, interest-only term loan signed with a "leading" insurance company, a new lender to the group, and an extension to its existing HSBC facility.