London pre-open: Stocks set for muted start
By Michele Maatouk
Date: Tuesday 02 Sep 2025
(Sharecast News) - London stocks were set for a muted open on Tuesday following a quiet session a day earlier, when markets in the US were closed for Labor Day.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "On the data front, attention now shifts to the euro-area CPI flash estimate for August. Headline inflation is expected at 2.0%, with core easing to 2.2% - both near the European Central Bank's (ECB) target. A print in line with expectations should reinforce the view that the ECB will hold rates steady in September. The next move is still likely a cut; softer growth could justify one more 25bp reduction by year-end. Yet markets now assign less than a 40% chance of another cut in 2025, down from circa 50% in July.
"This relative hawkishness versus the Federal Reserve (Fed) has supported the euro's rebound since late August. However, if eurozone growth disappoints, ECB doves could regain the upper hand. CFTC data show net speculative euro longs have risen sharply this year, largely on hopes of stronger military/security spending and diversification away from US assets. Central banks have also increased their euro holdings: official buyers accounted for 20% of eurozone bond issuance so far in 2025 (versus 16% in 2024), while an OMFIF survey pointed at a net 16% of central banks plan to increase euro reserves over the next 12-24 months (versus 7% last year).
"In the short term, the euro's appreciation already reflects much of this, meaning crowded long positioning could leave it vulnerable to a pullback. A flare-up in French politics would be a natural trigger. But in the medium run, the euro's outlook remains constructive thanks to diversification away from US assets."
In UK corporate news, Centrica said two UK nuclear power stations in which it has a 20% share had been given life extensions of a year.
Heysham 1 and Hartlepool are now expected to generate electricity until March 2028, one year later than previously expected.
The British Gas owner added that there was no change at the moment to the expected March 2030 closure date of Heysham 2 and Torness, announced last December.
Games developer Everplay Group said that full-year adjusted underlying earnings were expected to be slightly ahead of current market expectations, despite reporting a decline in interim revenues.
Revenues fell 10% to £72.4m in the six months ended 30 June, due to the timing of license revenues and new title launches, while adjusted underlying earnings slipped by 1% to £19.2m.
However, Everplay said its performance for the full year was, as usual, expected to be second-half weighted.
Elsewhere, Plus500 said it has secured a new clearing membership with ICE Clear Europe, part of the Intercontinental Exchange Group, one of the world's largest operators of exchanges and clearing houses for listed derivatives.
"This clearing membership enables the group to strategically expand its futures business to new territories and customers, further scaling its clearing services to cover a broader range of futures products across multiple asset classes, offering customers a more seamless trading experience," it said.
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