London pre-open: Stocks seen steady as May heads back to Brussels

London stocks were set for a steady start on Wednesday following a mostly muted close on Wall Street, as investors eyed the latest minutes from the Federal Reserve and more Brexit talks between Prime Minister Theresa May and European Commission President Jean-Claude Juncker.

The FTSE 100 was called to open just two points higher at 7,181.

London Capital Group analyst Jasper Lawler said the Fed minutes, due after the European close, will be scrutinised closely.

“Traders will be keen to gain a deeper understanding of the Fed’s abrupt change in direction of policy and motives for pressing pause on the hiking button,” he said.”

Meanwhile, investors will be watching out for any Brexit-related headlines as May heads back to Brussels for more discussions with Juncker.

"Whilst the pound surged through several moving averages on Tuesday, it could quickly slide back below $1.30 should Theresa May return from Brussels empty handed once again," said Lawler.

"The optimism from pound traders is impressive given that the EU have continued to say that they will not accept a time limit on the Irish backstop arrangement and refuse to make any changes to the already agreed deal."

On the data front, the CBI industrial trends survey is at 1100 GMT.

In corporate news, the UK competition watchdog has warned that the proposed merger between Sainsbury's and Asda could result in higher prices and reduced ranges in hundreds of local areas.

Sainsbury's immediately responded that it "fundamentally disagreed" with the provisional findings from the Competition & Markets Authority, which suggested possible remedies including selling off one of the Sainsbury's or Asda brands, divesting large chunks of stores or even prohibition of the merger.

Glencore said full year adjusted EBITDA increased 8% to $15.8bn and net income before significant items rose 5% to $5.8bn "in a challenging operating environment".

The miner also announced a new $2bn buyback program, which will run until the end of 2019.

CLS Holdings has exchanged contracts to acquire 9 Prescot Street, London E1 for £53.85m, excluding costs.

The commercial property investment company said the freehold property comprised 96,948 square feet of multi-let office space over seven floors, and was 100% let to four tenants with a weighted average unexpired lease term of two years to breaks.