London pre-open: Stocks seen lower on weak Asian cues, firmer pound

London stocks were set for a downbeat open on Tuesday, taking their cue from a negative Asian session as optimism over Sino-US trade relations faded and as the pound popped higher on hopes of an extension to Article 50.

The FTSE 100 was called to open 45 points lower at 7,138.

Meanwhile, the pound was up 0.3% against the dollar at 1.3141.

Konstantinos Anthis, head of research at ADSS, said: "Sterling continues to show resounding strength even though the UK is heading towards the Brexit date with no final agreement on the table. Speculation that PM May will be forced to ask for a delay and rumours that the EU side is prepared to provide the necessary time to arrive to an agreement is keeping the British currency supported though.

"May will be holding a meeting with her Cabinet today seeking consensus to ask for a delay in Article 50, which if requested and approved will push the pound to new highs with the 1.3220 highs coming into focus."

On the data front, BBA mortgage approvals are at 0930 GMT.

In corporate news, profits at Persimmon topped £1bn last year as the housebuilder faced scrutiny over its participation in the government's Help to Buy scheme.

The FTSE 100 group also appointed Dave Jenkinson as group chief executive on permanent basis, after previous boss Jeff Fairburn left last year in the wake of his £75m bonus furore.

Babcock said underlying earnings expectations for the year remained unchanged as it continued to make good progress and grow its businesses across defence, aerial emergency services and nuclear.

It said Brexit would result in a one-off tax cost of £10 as Babcock restructure its aerial emergency services businesses to comply with European operating requirements. Additional ongoing costs related to the operation of the new structures would be around £10m a year.

Group underlying revenue for the year was expected to fall to around £5.2bn from £5.36bn as its major QEC contract wound down and the company disposed of or exited more businesses in the second half.

RSA Insurance announced the appointment of Charlotte Jones as its chief financial officer, replacing Scott Egan, who moved to become chief executive officer of RSA's UK and international division on 5 February.

The company said Jones would serve on the board as an executive director, reporting to group chief executive officer Stephen Hester, and was expected to take up the position by the summer. She was currently a non-executive Director of RSA and member of the group audit and board risk committees.