London pre-open: Stocks to edge up amid renewed Sino-US trade hopes
London stocks were set to edge higher at the open on Wednesday amid renewed optimism over Sino-US trade talks.
The FTSE 100 was called to open six points higher at 7,561.
CMC Markets analyst Michael Hewson said: "European and US stocks enjoyed a decent push higher yesterday, and Asia has followed suit this morning, helped by a combination of factors.
"Firstly, a downgrade of global growth expectations by the IMF encouraged the expectation that central banks would in all likelihood step in with further measures to support the global economy in the weeks and months ahead.
"Secondly, earnings announcements from a variety of companies across different sectors, including banking and tech turned out to be largely better than expected.
"Thirdly, reports that US, China trade talks are set to restart next week as US negotiators look to bed down the conditions required to arrive at a longer-term solution, also helped give sentiment a boost, even though the likelihood of an imminent trade agreement has moved much further away."
On the UK data front, BBA mortgage approvals for June are due at 0930 BST.
In corporate news, Tullow Oil said it was revising down its 2019 full year production forecast to 89-93,000 bopd due to mechanical issues experienced completing the Enyenra-14 production well in Ghana.
The company reported interim pre-tax profits of $268m, up from $150m a year earlier. In June it had forecast full year production of 90,000 to 98,000 bopd.
Vodafone has agreed to share 5G active equipment, such as radio antennas, on joint network sites across the UK with its rival network O2.
The company said both itself and the Telefonica subsidiary had also agreed to greater 5G network autonomy on approximately 2,700 sites in 23 UK cities, where each party would install their own radio equipment, fibre connection and power supply, while sharing physical elements such as the mast. It said the agreement would see the 50-50 joint venture Cornerstone take an additional role in the deployment of both networks, and for further operational efficiencies.
Poor weather in May and June hit brewer Marston's, which reported a “modest” 0.5% rise in like-for-like sales at its managed and franchised pubs for the 42 weeks to July 20.
The company said it had decided to accelerate plans to cut debt and generate cash by deferring its remaining new-build plans and reallocate £20m -£30m of £70m in new-build capital expenditure” to drive higher returns from our existing estate”.
"We believe that this focus will further enhance our returns from our existing pub business and reduce our debt at an even greater pace," the company said in a trading statement.