London pre-open: Stocks to nudge lower as investors digest Brexit news, eye payrolls

London stocks were set to nudge just a touch lower at the open on Friday as investors digest the latest news on Brexit talks and await the release of the non-farm payrolls report in the US.

The FTSE 100 was called to open down three points at 7,318.

European Commission President Jean-Claude Juncker said "sufficient progress" has been made in the first phase of Brexit talks, and the UK and the EU can now move on to the next stage after reaching a preliminary agreement following a week of negotiations.

Prime Minister Theresa May said the deal would ensure there would be no hard border in Ireland, while EU citizens living in the UK will be able to go on living as before.

Oanda analyst Craig Erlam said: "There has been numerous times when an agreement looked difficult or even unlikely before year-end which would have made achieving a trade deal by March 2019 very tough. Today is a hugely significant step forward towards exiting the EU in 2019 and while both sides will be relieved at the progress, many more tough negotiations lie ahead. But we can’t underestimate how important today is."

In corporate news, Vodafone Group confirmed the end of its merger talks with Melita, putting the blame on regulators in Malta. The FTSE 100 communications giant, along with Melita’s owners Apax Partners Midmarket and Fortino Capital, had announced their intention to combine Vodafone Malta with Melita to create a fully integrated communications company in Malta, back in May.

International Airlines Group announced that its subsidiary, British Airways, has decided - following consultation with its trade unions and employees - to launch a flexible benefits scheme incorporating a new defined contribution pension scheme.

The FTSE 100 company said the scheme will open on 1 April next year, replacing the main UK defined benefit scheme - the New Airways Pension Scheme - and the main UK defined contribution scheme, the British Airways Retirement Plan (BARP).

Berkeley Group built more houses than expected in the first half of the year, generated piles of extra cash and upped its profits guidance for the coming few years.

The housebuilder said it now would generate pre-tax profit of £3.3bn in the five years 2021, from the £3.0bn indicated before.