London pre-open: Stocks seen lower ahead of busy week

(Sharecast News) - London stocks were set to fall at the open on Monday following a mostly weaker Asian session. The FTSE 100 was called to open around 65 points lower as investors eyed a busy week that includes rate decisions from the US Federal Reserve and the European Central Bank, and earnings from more than half the 'Magnificent 7'.

This includes earnings reports from Microsoft, Meta and Tesla on Wednesday and Apple on Thursday.

Kathleen Brooks, research director at XTB, said: "There is a lot resting on these reports, as tech stocks get sold off in the wake of China's Deepseek threat.

"In the last two years, the Magnificent 7 have done the heavy lifting for the S&P 500, and together their share prices have risen by 131% in that period. However, shares have stumbled slightly in 2025, and they are no longer the top performing sector.

"So far in 2025, the equal weighted S&P 500 has outperformed the market cap weighted index, which is a sign that the stock market rally is broadening out beyond tech."

In UK corporate news, WH Smith confirmed it was looking at potential strategic options for its high street stores, including a possible sale of the "profitable and cash-generative" unit.

The retailer said it had become a "focused global travel retailer" over the past decade. Its travel business now has more than 1,200 stores across 32 countries, providing three-quarters of group revenue and 85% of trading profit.

GSK announced that a pre-filled syringe version of its Shingrix shingles vaccine has been accepted for review by the European Medicines Agency.

Shringrix, which has already been administered to over 25m people across the continent since 2018, currently comes as a separate powder and liquid adjuvant, which need to be reconstituted in separate vials prior to administration.

A pre-filled solution, if approved, would offer a more convenient option for physicians, pharmacists and other healthcare professionals, GSK said.

Diversified Energy announced the acquisition of Maverick Natural Resources for $1.28bn, expanding its asset base and commodity mix while enhancing scale and operational efficiency.

The FTSE 250 company said the acquisition would increase revenue by 95%, boost free cash flow by 55%, and improve margins through synergies, with the combined company holding an enterprise value of $3.8bn and production of 1,200 million cubic feet equivalent per day.

It said the move would strengthen Diversified's position in multiple basins, including the Permian and Western Anadarko.