London pre-open: Stocks seen up as sterling slips ahead of indicative votes
London stocks were set for a positive open on Wednesday as sterling slipped ahead of the indicative votes due to take place in Westminster later in the day.
The FTSE 100 was called to open 28 points higher at 7,224, as the pound fell 0.3% against the dollar to 1.3172.
On Tuesday, hardline Brexiteer and European Research Group chair Jacob Rees-Mogg indicated that he would back Theresa May's Brexit deal, but Northern Ireland's DUP said it favoured a long delay over May's withdrawal agreement.
Danske Bank said investors should watch out for what MPs vote on later, especially the formulation on softer versions of Brexit, as it would be important for whether the House of Commons can support it or not.
"Remember, the indicative Brexit votes are not legally binding and we do not know how the EU will respond, although EU leaders will probably welcome a softer stance. This, however, will likely require a longer extension to negotiate.
"The main problem about Brexit is there is no majority for anything (except for a majority being against a no deal Brexit) and the House of Commons has voted most proposals down already in one way or another, so what has changed?"
Voting is expected to start at around 1900 GMT, with results due in between 2030 GMT and 2200 GMT.
On the data front, the CBI distributive trades survey is at 1100 GMT.
In corporate news, Sports Direct boss Mike Ashley has proposed a possible 5p-per-share takeover offer of Debenhams as long as the department store group immediately appoints him as its chief executive and cancels its current refinancing plans.
Subject to various conditions, Sports Direct said it "would also assist Debenhams in addressing its immediate funding requirements".
Cigarette maker Imperial Brands said it group net revenue growth was looking like being at or above the upper end of its 1-4% revenue growth range and EPS growth within its 4-8% guidance range.
Ahead of first-half results, the company said its operating profit growth in the period would be more than offset by increased investment in its Blu e-cigarette brand of £100m.
AstraZeneca said that Japan’s Ministry of Health, Labour and Welfare has approved Forxiga (dapagliflozin) as an oral adjunct treatment to insulin for adults with type-1 diabetes.
The FTSE 100 pharmaceuticals firm said the approval was based on data from the phase 3 ‘DEPICT’ clinical programme, as well as a dedicated trial in Japanese patients. It said the results showed that Forxiga, when given as an oral treatment in addition to adjustable insulin in patients with inadequately-controlled type-1 diabetes, demonstrated “significant and clinically-meaningful” reductions from baseline in average blood glucose levels, weight and total daily insulin dose.