London pre-open: Stocks set for muted start

London stocks were set for a muted open on Tuesday following gains in the previous session on the back of US stimulus optimism.

The FTSE 100 was called to open just three points higher at 6,526.

CMC Markets analyst David Madden said: "Equities in Europe and the US posted respectable gains yesterday due to hopes the Biden government will have the ability to bypass Republican politicians and introduce the proposed $1.9 trillion spending scheme.

"Joe Biden announced a $1.9 trillion stimulus plan before he was inaugurated as US president but since he took office, Democrats have been negotiating with Republicans in relation to the size of the spending programme. A group of Republican senators were pushing for a $618 billion plan, which was obviously nowhere near the President’s target."

In corporate news, online grocery platform and solutions provider Ocado reported a 68.8% rise in core earnings as the coronavirus pandemic drove demand for home deliveries.

Earnings before interest, tax, depreciation and amortisation in the 12 months to November 29 rose to £73.1m from £43.3m a year earlier. Full-year revenues were in line with expectations, up 32.7% to £2.3bn.