London pre-open: Stocks to edge up; central bank announcements eyed

(Sharecast News) - London stocks were set to edge up at the open on Monday as investors eyed a week packed with central bank policy announcements. The FTSE 100 was called to open around 11 points higher.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The European Central Bank (ECB), the Bank of Canada (BoC), the Reserve Bank of Australia (RBA) and the Swiss National Bank (SNB) will announce their latest policy verdict throughout this week and all - except the RBA - are expected to lower their rates.

"The BoC is expected to cut by 50bp while the SNB and the ECB are expected to announce a 25bp cut. Some investors are convinced that the ECB could announce more than a 25bp cut. Either it could go bigger with a 50bp cut, or cut by 25bp but shift their focus from inflation to economic growth. I believe that the second option is more plausible. If that's the case, we should not see a significant selloff in the euro post-decision."

Earlier, data from the National Bureau of Statistics showed that consumer price inflation in China fell to a five-month low in November, slowing to 0.2% year-on-year from 0.3% the month before and falling short of expectations of 0.5%.

Core inflation - which excludes food and fuel prices - rose 0.3% in November, down from 0.2% in October.

In UK corporate news, GSK said the US Food and Drug Administration has agreed to look at data from its MATINEE study to support the regulatory review process to obtain a new indication for the use of its Nucala drug as an add-on maintenance treatment for patients with chronic obstructive pulmonary disease.

The study met its primary endpoint with the addition of mepolizumab to inhaled maintenance therapy, achieving a "statistically significant and clinically meaningful reduction" in the annualised rate of moderate/severe exacerbations versus placebo with patients treated for 52-104 weeks.

Early-stage science investor IP Group said it plans to increase its share buyback plan after raising £15m from the sale of minority holdings in several portfolio companies.

The company said it has agreed the sale of stakes of less than 10% each in nine portfolio companies across its balance sheet and managed funds to Lexham Partners.

All proceeds will go towards its share repurchase programme, which will rise to £45m, up from the £30m previously planned.