London pre-open: Stocks to drop following strong gains on Tuesday
London stocks were set to drop at the open on Wednesday, taking their cue from a negative session in Asia and following a solid session the day before which saw strength in the energy sector propel the FTSE 100 to six-month highs.
The FTSE 100 was called to open 19 points lower at 7,504.
Meanwhile, sterling was down 0.1% against the dollar at 1.2924.
London Capital Group analyst Jasper Lawler said: "The pound was trading firmly below $1.30 in the previous session and remains there in early trade on Wednesday. Cross party talks are heeding little progress and are in danger of collapsing as soon as next week. Conservatives are also growing increasingly frustrated with Theresa May’s inability to deliver on Brexit. Theresa May potentially bringing the Brexit deal back for a fourth attempt in the Commons shows just how desperate she is.
"The overriding concern for currency traders right now is if Theresa May is ousted, who will replace her? And how far will they be willing to go to achieve Brexit. Suddenly, the no deal Brexit option could be back on the table."
On the data front, public sector net borrowing figures for March are at 0930 BST.
In corporate news, building materials group CRH hailed a "positive" start to the year, with first-quarter like-for-like sales up 7% on the year thanks to mild weather and good momentum across most of its major markets.
The company also said it has agreed to divest of its European Shutters & Awnings business to StellaGroup for more than €0.3bn.
Centamin said its Sukari gold mine produced 116,183 ounces of gold in the first quarter, above forecast of 105,000 - 115,000 ounces.
The company added that it was on track and reiterated annual guidance for 2019, with gold production of 490,000 - 520,000 ounces, at cash costs of $675-$725 per ounce produced and an AISC of $890 - $950 per ounce sold.
Antofagasta reported copper production of 188,600 tonnes in its first quarter, which was in line with expectations and up 22.6% year-on-year, thanks to higher throughput and the anticipated higher grades, particularly at Centinela.
The group said gold production rose 92.6% to 62,200 ounces in the three months ended 31 March, also on higher grades at Centinela, while molybdenum production improved by 12.9% due to higher throughput and recoveries at Los Pelambres, and production for the first time at Centinela.