London pre-open: Stocks to nudge up ahead of ECB announcement

London stocks were set to nudge up at the open on Thursday as investors eyed the latest policy announcement from the European Central Bank.

The FTSE 100 was called to open up around seven points.

The ECB is widely expected to cut rates by 25 basis points when it makes its announcement at 1315 GMT.

Danske Bank said: "Although that is the consensus, markets price in around a 15% probability of a 50bp cut this morning according to Reuters.

"Rather than focusing on the size of the rate cut, we should focus on where the policy rate will end in this cutting cycle, albeit we do not expect any verbal guidance on this.

"Markets may however interpret a 50bp cut as a signal of a lower terminal rate - and that may even be a signal that the ECB wants to send."

On home shores, investors will be mulling the latest forecast from Rightmove, which showed that house prices are set to rise by 4% next year, as mortgage rates fall and demand remains strong.

The forecast showed that new seller average asking prices are likely to rise by 4% by the end of the year, as 1.15m homes change hands.

Changes to stamp duty mean the first quarter is likely to be particularly busy, as buyers rush to complete before the changes come in on 1 April.

Average mortgage rates, meanwhile, are forecast to fall to around 4%. Rightmove is basing its prediction on expectations that the Bank of England will reduce the cost of borrowing four times next year.

However, Rightmove said 2025 was set to be a buyers’ market with the average number of available homes per estate agent branch the highest for this time of the year in a decade.

"While the number of buyers in the market is significantly higher that this time last year, they’re often spoilt for choice," Rightmove noted.

Tim Bannister, property expert at Rightmove, said: "We expect a busier year in 2025.

"The effects of stamp duty rising will be felt for the rest of the year too, and we may see some negotiation tactics play out, particularly on properties close to the £300,000 mark, as both buyers and sellers try to mitigate their higher costs through the price agreed."

Looking across the country, Rightmove said London was likely to enjoy a stronger year. Currently, the average asking price for a home in the capital is up 12% on 2019, in contrast to the whole country, where prices have risen 21% over the same period.

However, Rightmove said 2025 "could be the beginning of the price turning point for the London market, with the fundamental pull of the capital for both workers and international buyers predicted to start to reassert itself".

In corporate news, Currys said it swung back into the black in the first half, with a solid performance in the UK and Ireland helping to offset weakness in the Nordics.

The electricals retailer reported a group adjusted pre-tax profit of £9m, versus a loss of £10m in the same period a year earlier, as revenue ticked up 1% to £3.9bn.

Elsewhere, private equity firm TA Associates said it has agreed to sell its entire 12.6% stake in Auction Technology for £85.3m.

TA will offload 15,337,625 shares at £5.50 each. Completion of the sale is expected to take place on 20 December.