London pre-open: Stocks seen muted ahead of ECB announcement
London stocks looked set for a muted open on Thursday as investors eyed the latest policy announcement from the European Central Bank.
The FTSE 100 was called to open four points higher at 7,224.
The ECB rate decision is at 1245 BST, but with no change to policy expected, all eyes will be on Mario Draghi's press conference at 1330 BST.
CMC Markets analyst David Madden said: "In light of the sizeable drop off in inflation, traders will be expecting more details about the new targeted lending scheme that is planned to begin in September."
Danske Bank said it expects the ECB to maintain its easing bias, with no new additional stimulus measures announced.
"The update of the staff projections is unlikely to change much for inflation, but we see a downside risk to the 2020-21 growth forecast from its already low level. We will also get more information on the TLTRO3 terms, which we expect to be favourable in light of the ongoing struggles of the economy."
Elsewhere, trade talks between the US and Mexico were due to resume on Thursday after US President Trump tweeted that progress was being made "but not nearly enough".
"If no agreement is reached, tariffs at the 5% level will begin on Monday, with monthly increases as per schedule," Trump tweeted on Wednesday. "The higher the Tariffs go, the higher the number of companies that will move back to the USA!"
In UK corporate news, Entertainment One denied speculation that Mark Gordon was leaving his role as president and chief content officer.
The independent producer said “Gordon continues to be a part of the eOne team both now and into the future”.
Media reports said Gordon was in talks to leave over creative differences with senior managers of the company.
Aviva said it was planning to cut around 1,800 jobs as it looks to reduce expenses by £300m a year by 2022.
In an investor update, the insurer said this was the "first step" in making the group "simpler, more competitive and more commercial".