London pre-open: Stocks seen muted amid Sino-US trade concerns

London stocks were set for a muted open on Monday as investors kept an eye on Sino-US trade developments and with the Supreme Court ruling on the prorogation of Parliament due.

The FTSE 100 was called to open three points lower at 7,342.

CMC Markets analyst Michael Hewson pointed to the fact that US stocks closed lower on Friday.

"The reason for the late falls was renewed concerns over progress on US-China trade after Chinese officials abruptly cancelled a trip to Montana and Nebraska for talks over farming, though the failure to overcome the previous peaks in July may well have also prompted some end of week profit taking," he said.

"This weakness is likely to translate into a weaker open for Europe later this morning, as investors push back any prospect of imminent progress in the trade talks and look to the latest flash PMI data for services and manufacturing."

Investors were also likely to be nervous as the Supreme Court is due to rule this week, possibly as early as Monday, on whether Prime Minister Boris Johnson acted legally in proroguing Parliament.

"It would be a surprise if the judges were to find against the government, but even if they were to do so it’s not immediately apparent what difference it would make to whether the UK and EU are able to arrive at a deal," said Hewson. "Nonetheless a decision against the government could prompt a significant amount of sterling volatility, as investors weigh up what any government response might be."

In corporate news, High Street retailer Marks and Spencer said chief financial officer Humphrey Singer had decided to leave the company.

No departure date had been set and Singer would work with chief executive Steve Rowe to ensure an orderly transition, the company said in a statement.

Sports Direct has offered to buy Goals Soccer Centres, in which it currently holds an almost 19% stake, for 5p a share.

The troubled football pitch operator's shares were valued at 27.20p before being suspended from trading on the AIM market in March, with the business facing cancellation from the index on 30 September after it uncovered improper accounting practices.

Elsewhere, travel operator Thomas Cook finally collapsed as last-minute talks to save the industry giant failed, leaving thousands of holidaymakers stranded around the world and putting 22,000 global jobs at risk. The UK's Civil Aviation Authority said the company had "ceased trading with immediate effect". More than 150,000 Britons will be repatriated by the UK government in the biggest operation of its kind since World War 2.