London pre-open: Stocks to dip; easyJet agrees in principle to Castlelake takeover

(Sharecast News) - London stocks were set to dip at the open on Monday following solid gains the previous week, as investors eyed the latest reading on the UK construction sector.

The FTSE 100 was called to open around six points lower.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Last week ended on a positive note for European equities, as US markets were closed for the July 4th holiday. The Stoxx 600 advanced to a fresh record high despite a slight rebound in bond yields after Friday's PMI data showed stronger-than-expected activity in June, especially in services, perhaps helped by sunny weather and the World Cup. The FTSE 100 is also approaching its own all-time high levels - reached back in February - despite falling oil prices and downside pressure on mining stocks.

"So, the new week starts on a mixed note. European futures are pointing to a cautious start, while tech-heavy US futures are leading gains before the European open, despite mixed sentiment toward tech in Asia. The Korean Kospi, for example, is slightly sold off - though recovering losses at the time of writing - after news that Samsung would increase the prices of its memory chips by another 20%."

On the macroeconomic front, the S&P Global construction PMI for June will be released at 0930 BST.

In UK corporate news, easyJet and Castlelake said they had reached an agreement in principle on a takeover of the budget airline after the private equity group tabled a fifth offer at 690p a share. This followed four prior rejected approaches at 560p, 600p, 625p and 650p.

Elsewhere, ITV said it has agreed to sell its media and entertainment business to Comcast-owned Sky for up to �1.6bn.

Following Comcast's planned separation, Sky and ITV's M&E business are expected to form part of NBCUniversal upon completion of both transactions, ITV said.

High-performance computing firm Raspberry Pi said it has tapped Tim Powell to take over as chief financial officer, succeeding Richard Boult with effect from 16 October.

Raspberry Pi said Powell brings over 20 years' leadership experience across public companies. Most recently, he was CFO of Alpha Group, where he managed the company's move from AIM onto the Main Market of the London Stock Exchange and into the FTSE 250 and its subsequent sale to Corpay.