London pre-open: Stocks set to rise as Sino-US relations remain in focus

London stocks were set to rise at the open on Monday as investors continue to keep a close eye on trade relations between the US and China.

The FTSE 100 was called to open 25 points higher at 7,278.

CMC Markets analyst David Madden said: "Overnight, stocks in China traded a little higher after the Chinese central bank set the yuan fixing at 7.0211, which was a slight devaluation on Friday’s rate, but it was stronger than the 7.0331 that traders were expecting.

"Trading in Asia was subdued as markets in Japan, India and Singapore were closed for public holidays.

"On Friday, President Trump set US-China relations back even further by claiming that he ‘won’t do business with Huawei’ and he suggested that the planned trade meeting for September, might not take place. Previously, the US promised to loosen the restrictions on the Chinese tech giant, and he appears to have done a U-turn. Technology, national security, and intellectual property rights are an important component of the trade negotiations, so this is likely to hold up the prospect of a deal."

In corporate news, Acacia Mining has been told it can resume gold exports from its North Mara mine in Tanzania after receiving government clearance.

The company said it had received a letter from the Mining Commission of the Tanzanian Ministry of Minerals lifting a suspension “subject to its adherence to the export procedure”.

The ban was introduced in 2017 to keep processing activities in Tanzania.

Acacia last month accepted a 232p a share offer from 64% parent Barrick Gold.

Student accommodation owner, manager and developer The Unite Group has exchanged contracts to acquire a new 620-bed development site in Nottingham.

The company said the direct let development, which remained subject to planning consent, would open in time for the 2022-2023 academic year. It said total development costs were estimated to be £48m, delivering a development yield in line with its stated targets.

Tullow Oil announced the results of its Jethro-1 exploration well on Monday, drilled on the 60%-owned Orinduik licence offshore Guyana to a total depth of 4,400 metres in 1,350 metres of water.

The company said the well encountered 55 metres of net oil pay, which supported a recoverable oil resource estimate exceeding Tullow's pre-drill forecast. It said it “significantly” de-risked other Tertiary-age prospects on the Orinduik licence, including the shallower Upper Tertiary Joe prospect, which would begin drilling later in the month.