London pre-open: Stocks to rise as Trump's Brexit comments hit pound

London stocks set were for a positive open on Friday as the pound ticked lower after US President Trump said the Prime Minister's soft Brexit plan would "probably kill" any trade deal with the US.

The FTSE 100 was called to open 41 points higher at 7,692.

In an interview with The Sun, Trump said that if the UK goes ahead with the soft Brexit strategy revealed on Thursday - which would stick to a common rulebook with Brussels on goods and agricultural produce - any future trade deal with the US would likely be off the cards.

"If they do a deal like that, we would be dealing with the European Union instead of dealing with the UK, so it will probably kill the deal," he said.

"We have enough difficulty with the European Union.

"We are cracking down right now on the European Union because they have not treated the United States fairly on trading.

"No, if they do that I would say that that would probably end a major trade relationship with the United States."

London Capital Group analyst Jasper Lawler said: "Let’s not forget that the hope of a quick trade deal with the US was a significant factor in Theresa May’s decision to invite Trump in the first place. Another embarrassment that May could have done without.

"Trump’s words of no deal have confirmed the fears of Brexiteers and will have stoked the fire in the hard Brexit camp, making Theresa May’s future in charge look doubtful once more. This fear was reflected in the pound as it dropped sharply in late night trading. With no high impact UK economic data due for release today, pound traders will continue to watch political developments. Trump and May are expected to hold a joint press conference after lunch where they will both be pressed for trade comments. In the absence of any encouraging trade comments, gains in the pound going forward could be limited, and a meaningful move over $1.32 could be doubtful."

At 0726 BST, the pound was down 0.3% versus the dollar at 1.3164 and 0.2% lower against the euro at 1.1296.

In corporate news, Experian reported an acceleration in sales growth in the first quarter of its new trading year but the credit checker said currency swings looked likely to have a bigger impact on full year profits than first expected.

Group revenue grew 9% in the three months to 30 June, up from 8% the past financial year.

Flexible office space provider Workspace said that it saw good customer demand in the first quarter and that it is actively exploring acquisition opportunities.

In a first-quarter business update, the company said enquiries average 1,021 per month versus 1,016, while lettings average 88 per month compared to 93 in the same period a year ago.

Antofagasta confirmed that its subsidiary Mineral Centinela was selling Centinela Transmision, the company that holds its electricity transmission lines, for $117m.

"This sale is consistent with the group's strategy of disposing of its water and energy assets," said Antofagasta chief executive officer Ivan Arriagada.