London pre-open: Stocks to edge lower amid caution over Sino-US trade relations
London stocks were set to edge down at the open on Wednesday following an uninspiring close on Wall Street, as investors eye news on Sino-US trade relations.
The FTSE 100 was called to open 10 points lower at 7,173.
London Capital Group analyst Jasper Lawler said: "Investors aren’t prepared to run the current rally any further without more tangible evidence of progress towards a US-China trade deal or concrete evidence of improved global economic health."
Lawler added that a strong reading from Friday’s non-farm payrolls could spur another move higher in equities.
"It would support the US economic growth story, which will overshadow the Chinese slowdown concerns, particularly as talks are supposedly moving towards a positive conclusion," he said.
In UK corporate news, Melrose Industries expects to bring in £200m after agreeing the sale of a pair of assets acquired as part of the GKN deal.
The acquisitive turnaround specialist said it had agreed to sell Walterscheid Powertrain Group, previously known as GKN Off Highway Powertrain, and a 43.57% stake in Société Anonyme Belge de Constructions Aéronautiques.
DS Smith said trading since 1 November has continued to be strong and in line with its expectations, as it announced the sale of its plastics division to Olympus Partners for an enterprise value of $585m (around £450m).
The packaging company said the sale represents an important step in its continued progress as a leader in sustainable packaging and accelerates the programme of deleveraging, alongside organic cashflow.
Tritax Big Box reported an 8% uplift in its adjusted earnings per share to 6.88p for the year, as its EPRA net asset value per share increased by 7.4% to 152.83p as at 31 December.
The real estate investment trust said its total return for the year, being the increase in EPRA net asset value plus dividends paid, was 12.1% for the year, compared to its target of at least 9% per annum over the medium term.
Legal & General lifted its total dividend 7% to 16.42p after reporting 10% growth in operating profit to £1.9bn for 2018.
"Our strategy positions us well despite the broader environment, our current trading is strong and we expect this momentum to continue in 2019," said chief executive Nigel Wilson.