London pre-open: Stocks seen up amid China-US trade hopes

London stocks were set for a firmer open on Wednesday, taking their cue from upbeat sessions in the US and Asia amid growing hopes that the latest round of talks between the US and China will ease trade tensions.

The FTSE 100 was called to open 76 points higher at 6,937.

London Capital Group analyst Jasper Lawler said: "The US-China trade talks being extended into a third day is being interpreted by the markets as a sign of progress. Comments coming from both parties continue to indicate that the talks are, so far going 'very well'.

"A deal is likely to still be a long way off, with many twists and turns still to overcome along the way. However, the extension is a step in the right direction, sending a signal that the two sides are in serious negotiations and are working hard to resolve the issues."

In currency markets, sterling was up 0.2% against the dollar at 1.2741 and flat versus the euro at 1.1113 as the Brexit withdrawal bill returns to Parliament to be debated for four days ahead of the Commons vote on 15 January.

On Tuesday, Prime Minister Theresa May suffered what could well be the first of many defeats from opponents of a no deal Brexit as MPs backed by 303 votes to 296 a cross-party amendment that would limit the scope for tax changes following a no deal unless authorised by MPs .

"If a no deal is increasingly ruled out by Parliament the pound could find itself supported moving towards the vote, even as uncertainty of what comes next remains high," said Lawler.

In corporate news, Sainsbury's reported a fall in like-for-like sales over the past 15 weeks, which it blamed on cautious customer spending and the decision to reduce Black Friday promotions.

Total sales fell 0.4% in the third quarter ending 5 January, with like-for-like sales excluding fuel down 1.1%. City analysts had expected a 0.3% rise in LFL sales after the 0.2% gain in the first quarter and 1.0% in the second.

House builder Taylor Wimpey said it would report 2018 full year results in line with expectations as the housing market remained stable despite uncertainties caused by Brexit.

"During the year, we saw good levels of demand, which converted into strong sales rates across the business," the company said in a trading statement.

Total home completions increased by 3% to 14,947, including joint ventures.

Fresnillo confirmed the appointment of André Sougarret Larroquete as its new chief operating officer - a role, in which he would oversee the safe and efficient running of the company’s existing mines.

The company said Larroquete was bringing a “significant” track record in the mining sector with him. Larroquete was joining Fresnillo following the retirement of Roberto Díaz.