London pre-open: Stocks to edge up after another record close on Wall St

London stocks are set for a firmer open on Monday, taking their cue from another record close on Wall Street at the end of last week.

The FTSE 100 was called to open 15 points higher at 7,680.

There are no major data releases due on Monday, but things will pick up on Tuesday with the release of UK net lending and mortgage approvals, while in the US, the Fed’s latest policy announcement is due on Wednesday and non-farm payrolls are out on Friday.

Meanwhile, investors will keep an eye on forex markets following the recent drop in the dollar.

CMC Markets analyst Michael Hewson said: “It’s been just over six weeks since the US Federal Reserve raised its key benchmark interest rate and since then the US dollar has been on a slow decline despite the current likelihood that they will raise rates again when they meet in March, and ahead of this week’s meeting which is expected to keep policy unchanged.

“This decline in the US dollar picked up speed last week on concerns that the US could be set on a course to a possible trade war with its partners. These concerns were reinforced at Davos in the wake of comments by the US Treasury secretary as well as his colleague Wilbur Ross, the US Commerce secretary.

President Trump’s speech on Friday did nothing to increase those concerns, but neither did they assuage them. His comments that the US wanted free but “fair” trade suggested that he would not be shy in confronting what he considered unfair trade practices, potentially putting him on a collision course with China, as well as the European Union.”

In UK corporate news, Anglo American said it had sold the New Largo thermal coal project and Old New Largo closed colliery in South Africa for ZAR 850m ($71m).

The project was bought by historically disadvantaged South Africans and the Industrial Development Corporation SOC.

GKN looked to clear up a dispute over its pensions deficit on Monday as it battles to stave off a hostile takeover from smaller rival Melrose Industries.

The FTSE 100 group said its group pension scheme's accounting deficit stood at £0.7bn at the end of December with an actuarial deficit of £0.4bn and noted that the expected net debt after a potential takeover could have implications for its banking covenant.

John Laing Infrastructure Fund updated the market on the impact of the liquidation of Carillion, saying its investment adviser John Laing Capital Management was continuing to work to replace Carillion as facilities management provider on the nine JLIF projects, and expected that to occur on similar terms to the existing contracts within the projects.

The FTSE 250 firm said it anticipated that there would be “minimal” service disruption, however it initially expected additional advisory and transaction costs to be approximately £3m in aggregate.

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