London pre-open: Stocks to rise as all eyes remain firmly on Brexit
London stocks were set for a firmer open on Tuesday, with sterling still under pressure as all eyes remain firmly on Brexit.
The FTSE 100 was called to open 17 points higher at 7,298.
CMC Markets analyst David Madden said: "Almost two hours after the close of the London Stock Exchange, we heard from Prime Minister Johnson who called upon his own MPs to back his plan, and for them to vote against Mr Corbyn’s request for a ‘pointless’ extension. Mr Johnson doesn’t want a general election, and he feels the UK’s chances of getting a deal from the EU have increased.
"Today’s vote about a possible extension will determine the next course of action, and should MPs try and block a no-deal Brexit by obtaining an extension, the Prime Minister would likely call a general election, and that might put further pressure on the pound."
On the data front, Markit’s construction PMI is at 0930 BST. It’s expected to have ticked up to 45.9 in August from 45.3 in July.
In corporate news, plumbing and heating products distributor Ferguson said it planned to spin off its UK operations and list it as Wolseley as chief executive John Martin announced he would step down on November 19.
"The demerger will enable both Wolseley UK and Ferguson to focus on accelerating the execution of their independent plans, providing clear investment propositions for each business,” Martin said.
Tesco has sold its mortgage portfolio to Lloyds Banking Group for around £3.8bn in cash.
As a result of the deal, Tesco Bank’s 23,000 mortgage customers will be transferred to Halifax, a division of Bank of Scotland, which is a wholly owned subsidiary of Lloyds.
DS Smith assured investors that its expectations for overall financial performance remained unchanged despite continued macro-economic uncertainty.
The FTSE 100-listed packaging business said strong pricing discipline, ongoing operating cost efficiencies and new business wins in Europe and the US have allowed the company to progress despite subdued volumes in Germany, as well as other economies with significant export-led market exposure.