London pre-open: Stocks to track Asian shares higher
London stocks were set for a positive open on Tuesday, tracking gains in Asia.
The FTSE 100 was called to open nine points higher at 7,408.
London Capital Group analyst Jasper Lawler said: "A mixed session on Wall Street was followed by a mainly positive session in Asia overnight supported by the continued easing of geopolitical tensions and earnings optimism overshadowing tech sector concerns. European bourses are taking the lead from Asia, indicating a stronger start on the bell."
As far as sterling is concerned, Lawler said GBP/USD is seen edging marginally higher after dropping to a five-week low of $1.3918 overnight.
"With no high impacting data due and no news on the Brexit headline front, the pound could still struggle to capitalise on the softer dollar. Minor data prints will come in the form of government net borrowing and CBI business optimism figures."
Public sector net borrowing is at 0930 BST, while the CBI industrial trends survey is at 1100 BST.
In corporate news, the London Stock Exchange reported first-quarter trading broadly in line with expectations before an annual shareholder meeting that will seek to draw a line under the group’s recent troubles.
Total income for the three months to the end of March increased 13% to £520m and gross profit rose 13% to £464m. Analysts on average had forecast total income of £522m and £467m gross profit.
Melrose said GKN's profit and cash generation were below market expectations in the first three months of the year prior to the completion of the takeover earlier this month.
Nevertheless, the FTSE 250 company said it had planned for such an underperformance and remained confident it will be able to deliver promised turnaround "over the medium term".
Meggitt has sold photo etching group Precision Micro for £22.5m in cash.
The company, which specialises in high performance components and sub-systems for the aerospace, defence and energy markets, said the disposal is consistent with its strategy to focus on businesses of scale in attractive markets where its leading positions offer greater potential for growth and operational efficiencies.