London pre-open: Stocks seen up amid trade deal optimism
London stocks were set to edge higher at the open on Tuesday amid continued optimism over a China-US trade deal.
The FTSE 100 was called to open 10 points higher at 7,406.
CMC Markets analyst Michael Hewson said: "In a further sign that progress appeared to be being made the Chinese Ministry of Commerce released a statement earlier today saying that both sides had 'reached a consensus' on properly resolving a number of relevant issues. As a result markets in Asia have picked up from where US and European markets left off yesterday, and as such we could well see another positive start for European markets later this morning.
"While it is easy to be sceptical about these sorts of reports, given we’ve heard them so many times before, particular the ones about a roll back of tariffs, they do tend to create a momentum all of their own, even when they are denied, and no matter how cynical you are, it has tended to be a fool’s errand in standing in the way of any move higher."
In UK corporate news, building materials group CRH said it expected full year core earnings to be more than €4.15bn (£3.55bn) after a strong Americas and European performance in the first nine months of 2019 and despite a downturn in the UK due to Brexit.
Earnings before interest, tax, depreciation and amortisation rose 7% on a like-for-like basis to €3.2bn. Cumulative nine-month sales to the end of September were up 4% to €21.8bn.
Third quarter trading in CRH's Americas Materials Division benefited from more favourable weather conditions than experienced in the first half of the year, the company said.
Compass Group reported a 3.5% decline in full year profit before tax to £1.47bn as the impact of cost action charges offset a higher than expected rise in turnover and the benefits of foreign exchange.
The catering and hospitality specialist enjoyed organic revenue growth of 6.4%, above its target range of 4-6%, after strong performances in North America, Turkey, India and Latin America.
Industrial thread maker Coats Group said it was buying the business and assets of US-based Pharr High Performance Yarns for $37m (£28.7m).
Pharr makes high-performance engineered yarns for the industrial thermal protection, defence and fire service industries. In its latest financial year, Pharr reported annual sales of $110m and $5m in adjusted core earnings.