London pre-open: Stocks seen lower amid worries about Italy, US-China relations
London stocks were set for a downbeat open on Wednesday as worries about Italian politics continue to weigh on investors’ minds and after US President Trump renewed his threat to impose $50bn of tariffs on Chinese imports.
The FTSE 100 was called to open 10 points lower at 7,625.
CMC Markets analyst Michael Hewson said: "It was a bad start to the week for markets in Europe and the US as stocks on both sides of the Atlantic fell sharply over concerns that political instability in Europe might cause financial dislocation to the banking system across the continent, as banking stocks got hammered, and investors piled into US treasuries, gold, and the safe havens of the Swiss franc and Japanese yen.
"These concerns look set to continue this morning with another lower open as investors continue to eye the latest developments in Rome, as well as the prospect of elevated trade tensions after President Trump announced that the US would be proceeding with $50bn worth of tariffs on Chinese in imports. With EU exemptions on US tariffs also due to expire this Friday, markets are likely to find it difficult to catch a break today."
In corporate news, Royal Bank of Scotland announced that its chief financial officer and executive director Ewen Stevenson has resigned to take up an opportunity elsewhere.
The bank said the effective date of his departure will be confirmed in due course but he will remain in his position to oversee an orderly handover of his responsibilities.
Elsewhere, FTSE 250 heat treatment provider Bodycote posted a jump in revenue for the first four months of the year on Wednesday and said it now expects full-year revenue to be higher than previously anticipated, with headline operating profit also seen slightly ahead of current analyst consensus.
In the four months to 30 April, group revenue rose 7% from the same period a year ago to £243m, or 10% at constant currency.