London pre-open: Stocks to nudge lower ahead of BoE announcement

London stocks were set to nudge a little lower at the open as investors eye the Bank of England's latest policy announcement and quarterly inflation report, and the release of some key manufacturing data.

The FTSE 100 was expected to open eight points lower at 7,377.

CMC Markets analyst Michael Hewson said: "The most likely outcome is for the Bank of England to remain on hold, particularly with a general election only a month away, with policymakers noting the slowdown in GDP, while arguing that the recent rise in the pound and fall in commodity prices is likely to take the edge off in inflation.

"Before that we get to see how well the manufacturing sector ended Q1 with the latest industrial and manufacturing production numbers for March, with small declines expected to be seen for both of about 0.2%, along with the latest March trade numbers, which are expected to show a £3bn deficit."

Manufacturing and industrial production figures are at 0930 BST, along with the goods trade balance. The BoE's inflation report and policy announcement are at 1200 BST.

Before that, however, investors will be digesting the latest survey from the Royal Institution of Chartered Surveyors.

The main house price index held steady at +22 in April from March, which was the lowest reading since September. Economists had expected a drop to +20.

Meanwhile, RICS's measure of how prices will perform in the next three months fell to +4 from +11, marking the softest reading since July 2016 and suggesting contributors anticipate a slower rate of house price inflation ahead.

In corporate news, first quarter underlying operating profit at paper and packaging maker Mondi fell 6% to €252m (£211.7m) as strong sales volume growth was more than offset by a significantly lower forestry fair value gain, inflationary cost pressures and lower average selling prices.

Underlying operating profit was up 12% to €225 m on the fourth quarter of 2016 as the group benefited from higher sales volumes and prices.

Coca Cola HBC beat analysts' forecasts for first quarter revenues, posting a 4.5% increase to €1.377m (Numis: €1.304m) thanks to strong growth in emerging markets as Russia returned to growth. FX-neutral revenues were up by 5.2% with sales volumes increasing 0.7% excluding calendar effects related to Easter.

Volumes in established markets fell 2.2% in comparison with the same quarter of the year before, while those in developing markets dropped 3.6%. In emerging markets on the other hand they rose by 4.0%.