(Alliance News) - Stock prices in London are seen opening higher on Monday on the possibility of a summit about Ukraine between US President Joe Biden and his Russian counterpart Vladimir Putin.
In early company news, veterinary products firm Dechra Pharmaceuticals reported robust interim results. Safety equipment provider Halma made a US acquisition. Hammerson confirmed discussions to sell two shopping centres.
IG futures indicate the FTSE 100 index is to open 27.88 points higher at 7,541.50. The index closed down 23.75 points, or 0.3%, at 7,513.62 on Friday.
Dechra Pharmaceuticals delivered strong interim results amid increased consumer spending on pets during Covid-19 restrictions.
For the six months that ended December 31, Dechra posted pretax profit of GBP53.4 million, up 51% from GBP35.4 million a year before. This was on revenue of GBP322.4 million, up 7.5% from GBP299.8 million.
The Northwich, Cheshire-based firm declared an interim dividend of 12.00 pence, up 8.1% from 11.11p.
Looking ahead, Dechra said trading at the start of the second half remains strong, especially in major markets which are returning to "historic levels" of growth.
"Future prospects remain excellent as we strengthen the group's infrastructure, continue to outperform markets and identify and deliver new strategic growth opportunities," said Chief Executive Officer Ian Page.
Halma said it has acquired Peabody, Massachusetts-based International Light Technologies for USD26.6 million on a cash and debt free basis, for its Ocean Insight unit.
ILT is a developer of technical lighting sources and light measurement systems, which are used in biomedical, environmental, agricultural, food and beverage, and industrial applications.
Chief Executive Officer Andrew Williams commented: "ILT's focus on the generation and measurement of light is highly aligned with Ocean Insight's mission to use the measurement of light to expand scientific discovery, reduce waste, and improve the quality of life. ILT's products and services will bring complementary capabilities and technologies to Ocean Insight, allowing it to serve a greater range of customer needs."
Hammerson confirmed a Sunday Times report that it is in talks over the possible sale of two of its shopping centres for GBP120 million, as the retail property company looks to strengthen its balance sheet after the Covid-pandemic.
Hammerson confirmed that it is in discussions with entities related to Swiss property developer Redical Holdings AG on terms for a possible sale of its Victoria Gate and Victoria Quarter shopping centres, both in Leeds, England.
Calls for a higher open in London come as US President Biden agreed in principle to a meeting with Russian President Putin so long as Moscow does not invade Ukraine, the White House confirmed Sunday after it was first announced by France.
The US is "committed to pursuing diplomacy until the moment an invasion begins", press secretary Jen Psaki said in a statement.
"President Biden accepted in principle a meeting with President Putin...if an invasion hasn't happened."
She added: "We are also ready to impose swift and severe consequences should Russia instead choose war. And currently, Russia appears to be continuing preparations for a full-scale assault on Ukraine very soon."
French President Emmanuel Macron and Putin on Sunday agreed to work for a ceasefire in eastern Ukraine.
In a phone conversation lasting 105 minutes, they agreed on "the need to favour a diplomatic solution to the ongoing crisis and to do everything to achieve one", the Elysee said, adding that French Foreign Minister Jean-Yves Le Drian and his Russian counterpart Sergei Lavrov would meet "in the coming days".
Moscow denies it plans to attack its neighbour, but is seeking a guarantee that Ukraine will never join NATO and that the Western alliance will remove forces from Eastern Europe, demands the West has refused.
In the US on Friday, Wall Street ended lower. The Dow Jones Industrial Average and S&P 500 both ended down 0.7%, and Nasdaq Composite closed 1.2% lower. Financial markets in the US will be closed on Monday for Presidents Day.
In Asia on Monday, the Japanese Nikkei 225 index closed down 0.8%. In China, the Shanghai Composite ended marginally lower, while the Hang Seng index in Hong Kong was down 0.8%. The S&P/ASX 200 in Sydney closed up 0.2%.
Japan's private sector is on track for a further decline in February, as a record number of Covid-19 cases and renewed restrictions tighten the stranglehold on output and new orders, data from IHS Markit showed.
The au Jibun Bank flash Japan composite purchasing managers' index dropped to 44.6 points in February from a final figure of 49.9 in January.
The dollar was lower early Monday.
The pound was quoted at USD1.3630 early Monday, up from USD1.3584 at the London equities close Friday. The euro was priced at USD1.1375, up from USD1.1334. Against the yen, the dollar was trading at JPY114.95 in London, down from JPY115.11.
Brent oil was quoted at USD93.08 a barrel Monday morning, up from USD92.85 at the close Friday. Gold stood at USD1,891.62 an ounce, soft from USD1,893.40 on Friday.
In the economics calendar Monday, there are PMI readings due from Germany, eurozone, and the UK.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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