London pre-open: Stocks seen muted as Brexit talks deadline extended
London stocks were set for a muted open on Monday after the deadline for Brexit talks was extended.
The FTSE 100 was called to open seven points higher at 6,544.
Over the weekend, the UK and the EU agreed to extend Brexit trade talks into this week, although British Prime Minister Boris Johnson said the two sides were "still very far apart" on key issues.
European Commission president Ursula von der Leyen on Sunday said negotiators would "go the extra mile" to breach the impasse after what she described as a "useful" phone call with Johnson. Significantly no new deadline was set by either side as the Sunday zero hour for an end to talk came and went.
CMC Markets analyst Michael Hewson said: "The Pfizer vaccine begins its roll out in the US this week after being approved at the weekend, and this along with hopes of a new stimulus bill being signed off is helping Asia markets start the week modestly positive, and this looks to translate into a modestly positive open here in Europe this morning.
"On the subject of deadlines, the latest UK/EU trade talk deadline came and went at the weekend, as politicians on both sides agreed to keep talking. In reality the only deadline that matters now is the 31st December, as the procrastination continues between EU and UK negotiators, with rules around the so-called level playing field and governance, still at the heart of the disagreements between the two sides."
In corporate news, pharmaceutical company AstraZeneca said it was buying US drug developer Alexion in a cash and shares deal worth $39bn.
Both companies have approved the deal, which still needs regulatory and shareholder approval. The deal is expected to close in the third quarter of 2021.
Polypipe Group said annual profit would beat expectations after revenue rose 8% in November. Underlying operating profit for the year to the end of December will be about £40m, exceeding the consensus forecast range of £35m to £37m, the company said.