London pre-open: Stocks seen higher amid positive Asian cues
London stocks were set for a firmer open on Tuesday following a positive Asian session, as traders return to their desks after the Bank Holiday weekend.
The FTSE 100 was called to open 33 points higher at 7,310.
CMC Markets analyst David Madden said: "Overnight in Asia, stocks traded higher as dealers are hopeful the US and Japan will strike a trade deal. President Trump said there is a ‘tremendous’ trade imbalance between the two nations, and he is keen to rebalance the relationship. Yesterday, Mr Trump claimed the US is not ready to make a deal with China, and he reminded Beijing that tariffs could go up."
On home turf, the pound fell on Monday as investors mulled news of Nigel Farage's Brexit party's victory in the European elections.
"The threat of a hard line Brexiter Conservative candidate replacing Theresa May has increased significantly after the Brexit party stormed ahead in the elections, whilst the Tories experienced their worst results in history," said London Capital Group analyst Jasper Lawler. "Keen to distance themselves from the failure to deliver on Brexit, candidates are pledging Brexit with or without a deal by the end of October."
On the data front, mortgage approvals figures for April are due at 0930 BST.
In corporate news, Galliford Try said it had rejected a bid from home builder Bovis Homes as the offer was not in the interests of all shareholders and the need to ensure that the remaining Galliford Try UK listed construction focused group had a viable capital structure.
Bovis wanted to buy Galliford’s Linden Homes and Partnerships & Regeneration arm in exchange for new Bovis shares.
Bovis said both companies “are no longer in discussions”.
Tritax Big Box REIT announced that outline planning consent has been obtained for up to 2.31 million square feet of logistics space at Symmetry Park in Kettering.
The company said it represented the second new development from the db Symmetry strategic land portfolio it acquired in February. It said it currently held the land under option, and would now begin committing the initial capital, to be drawn down in phases, in order to ready the site for promotion on a pre-let development basis.
NMC Healthcare, alongside the General Organization for Social Insurance (GOSI) and its investment arm Hassana Investment Company, announced the closing of their definitive agreements over the formation of a joint venture in the Saudi Arabia healthcare sector.
The company said the NMC KSA joint venture was formed by GOSI's contribution of its 38.88% stake in Tadawul-listed National Medical Care Company at a price of SAR 54 per share, and NMC's contribution of its five assets in the country and an additional $66m cash injection at closing.