London pre-open: Stocks seen lower after hitting record high
By Michele Maatouk
Date: Monday 06 Feb 2023
(Sharecast News) - London stocks were set to fall at the open on Monday, after the top-flight index hit a record high at the end of last week.
The FTSE 100 was called to open 25 points lower at 7,876.
CMC Markets analyst Michael Hewson said: "As we look ahead the beginning of a new week, rates markets have continued to see yields push higher and that looks set to see a weaker European open, even as the Japanese yen slips back sharply in Asia on reports that Bank of Japan governor Kuroda's successor might be his deputy Amamiya, raising the prospect of continuity when it comes to easy monetary policy.
"The sharp slide in the value of the pound is also likely to be a worry for the Bank of England with inflation still well into double figures. External MPC member Catherine Mann is due to speak later today, as is Chief economist Huw Pill, and their comments could offer food for thought in respect of where they see the terminal rate for UK rates, with the current base rate at 4%."
In corporate news, chemicals company Croda has agreed to acquire biomaterials firm Solus Biotech for KRW 350.0bn (£232.0m) one a cash and debt-free basis.
Croda said the acquisition provides it with access to Solus' existing biotech-derived ceramide and phospholipid technologies, and will "significantly strengthen" its beauty actives portfolio and increase its exposure to targeted "prestige segments".
Molten metal flow engineering and technology firm Vesuvius said it had been hit by a cyber attack involving "unauthorised access" to its systems.
"Immediately upon becoming aware of unauthorised activity on our networks, we have taken the necessary steps to investigate and respond to the incident, including shutting down affected systems," the company said.
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