London pre-open: Stocks seen muted as investors eye Brexit talks

London stocks were set for a muted open on Monday, with Brexit talks very much in focus.

The FTSE 100 was called to open just five points higher at 6,555.

CMC Markets analyst Michael Hewson said this was set to be a make-or-break week for talks, with a possible ratification summit on 10th December.

“There has undoubtedly been a ratcheting up of the stakes in the last few days, with France threatening to use its veto, in perhaps a calculated attempt to try and exert its influence in the final terms, while the UK has also said it would not shift on its red lines of fishing, level playing field and oversight and governance.

“With talks resuming over the weekend, we’ve been treated with various outbursts of optimism from the likes of Ireland’s foreign minister Simon Coveney who was saying that a deal was 97% to 98% done to the Irish Prime Minister saying that a deal was no more than 50-50

“Reports of a compromise over fishing have seen the focus now move to the level playing field as it has been called, which would dictate the level of divergence allowed between the UK and EU in any future trading relationship. France has said it is not opposed to some level of divergence, but that there needs to be a mechanism of sanctions in place if the divergence is considered excessive.

“In essence if the issue of fish does fall away, and on that it depends on how you interpret the smoke signals coming out of the two camps, it then comes down to the levels of divergence and the governance and enforcement mechanisms, that both sides find acceptable.”

In corporate news, Frasers Group confirmed it was in talks with administrators of retail chain Debenhams on a potential rescue, but warned “time is short” to do a deal.

The group, owned by retail tycoon Mike Ashley, revived its interest in taking over Debenhams over the weekend, after JD Sports pulled from acquisition talks last week and placed the 242-year-old retailer on the verge of liquidation.

Whilst Frasers Group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia Group, Debenhams' biggest concession holder,” the company said.

Games Workshop declared a dividend of 60p a share as the miniature wargames maker upgraded its first-half profit forecast for the third time in three months.

The FTSE 250 company said pre-tax profit for the six months to the end of November would be at least £90m, up from £59m a year earlier, on revenue up 25% to about £185m.