London pre-open: Stocks to edge up as earnings roll in
London stocks were set to edge higher at the open on Tuesday following losses in the previous session, with earnings in focus.
The FTSE 100 was called to open six points higher at 7,253.
London Capital Group analyst Jasper Lawler said: "Movement on the FTSE could start to take on a more convincing direction over the coming days as earnings releases pick up and the pound could hit some volatility after a quiet start to the week. On the corporate front, this week sees the banks update the markets, starting today with HSBC, followed by Lloyds on Wednesday, Barclays on Thursday and RBS on Friday.
"Expectations are running reasonably high after the solid US banks season, with HSBC returning to growth and Lloyds potentially increasing its dividend. Should they perform well the FTSE could see buying interest pick up once more.
"Even though the pound has tumbled over the past two sessions, the FTSE has not appeared to capitalise. The FTSE has also moved lower as the pound has dropped from its recent high on Friday to fall below $1.40 in the previous session for the first time since Wednesday. Whilst the BoE could look to raise interest rates as soon as Spring, this is being overshadowed by Brexit concerns or more specifically confusion from Theresa May’s Brexit cabinet and uncertainties over the post Brexit transition period."
On the data front, the CBI industrial trends survey is at 1100 GMT, while Wednesday sees the release of the unemployment rate and average earnings and GDP data is due on Thursday.
In corporate news, Fidessa has confirmed that it is in "advanced discussions" about being taken over by Swiss banking software group Temenos for 3,646.7p per share in cash. After Fidessa's shares rose almost 12% the day before, the FTSE 250 company's directors said that if the discussions result in a firm offer they intend to recommend it to shareholders.
HSBC’s annual profit rose by 11% as higher revenue and lower bad debts made up for higher costs at the global bank.
Adjusted pre-tax profit for the 12 months to 31 December rose by $2.1bn (£1.5bn) to $21bn as adjusted revenue increased 5% to $51.5bn.
On an adjusted basis, loan impairment charges fell to $1.8bn from $2.6bn, mainly due to the healthier state of the oil and gas industry in North America.
Vodafone announced the start of trials of what it claims is the world's first air traffic control drone tracking and safety technology on Tuesday.
The FTSE 100 telecoms giant said its approach used 4G internet of things (IoT) technology to protect aircraft from catastrophic accidents, as well as prevent inadvertent or criminal drone incursions at sensitive locations such as airports, prisons and hospitals.