London pre-open: Stocks seen lower after Wall Street selloff
London stocks were set for a downbeat open on Thursday, taking their cue from Wall Street, where shares reversed early gains to end sharply lower.
The FTSE 100 was called to open 26 points lower at 7,595.
London Capital Group analyst Jasper Lawler said: "Despite an early burst higher for the Dow following Trump’s turnaround on Chinese restrictions, the index surrendered its biggest daily gain in 4 months to close 165 points in the red. A selloff in tech stocks & financials overshadowing a rally in the energy sector."
There are no major UK data releases due, but investors will be looking to the two-day EU summit that kicks off later in Brussels.
"With the UK dragging its feet over the publication of its paper on the UK-EU post- Brexit relationship, which is now not expected until July, no progress is expected on any major issues surround the UK exiting the EU at this meeting," Lawler said.
"Instead the EU is expected to give a stern and fierce warning to the UK over its lack of progress on major issues, such as the Irish border policy. With the clock ticking a no deal Brexit is looking increasingly more likely, which makes it almost impossible for the pound to make any serious headway."
In corporate news, the World Cup and warm weather have helped revive sales at Greene King after squeezed household budgets and rising costs contributed to falling profit in the brewer and pub operator’s last financial year.
Adjusted pre-tax profit for the year to the end of April fell 11.2% to £243m as revenue declined 1.8% to £2.18bn. Pub like-for-like sales fell 1.2% excluding the impact of snow in March but have revived to show a 2.2% increase in the last eight weeks.
Tullow Oil updated the market on its recent operational activities, telling shareholders it expected first half oil production from its West Africa assets to average 87,400 barrels of oil per day (bopd), in line with expectations.
The company said first half working interest gas production was expected to average 2,700 boepd, resulting in a total group oil and gas production average for the first half of 90,100 boepd.
Retailer JD Sports Fashion said it continues to be on track to deliver a full year in line with consensus market expectations.
The store estate has been increased by a net 36 stores in the period to 23 June, with the emphasis on international development with 18 new stores to date across Europe.