London pre-open: Stocks to edge up despite political turmoil
London stocks were set to edge higher at the open on Tuesday despite political turmoil.
The FTSE 100 was called to open 12 points higher at 7,700.
London Capital Group analyst Jasper Lawler said the FTSE could find itself trading more in line with its European peers as the pound attempts to stabilise.
"Theresa May defiantly stood her ground on Monday; with threats of a vote of no confidence unfounded she lives to fight another day as PM. As Theresa May’s position stabilised, the pound managed to pick itself up off its lows and ended Monday just 0.3% lower," Lawler said.
On the data front, UK manufacturing and industrial production data and monthly GDP is due at 0930 BST.
"In the absence of any further Brexit headlines or domestic political disarray, investors will look towards manufacturing and industrial production data due this morning. Both sets of figures are expected to rebound convincingly in May, after heavy falls in March and April thanks to unseasonably harsh weather conditions. Manufacturing is expected to have increased 0.9% month on month whilst industrial production is expected to have picked up 0.5% month on month, up from a contraction of 0.8% in April."
In corporate news, Ocado reported flat underlying operating profit in the first half of the year but the online grocery specialist said the second half was likely to be lower. Recently promoted to the FTSE 100 index, the group swung to a £9m loss before tax for the half-year to 3 June from a £17.7m profit a year ago.
Infrastructure services provider Kier Group has secured three-year extensions on its Highways England contracts for Areas 3 and 9, with a total value of around £250m per annum, it confirmed on Tuesday.
The FTSE 250 company said the contracts provided routine highway maintenance services, repairs to defects, emergency incident response services and severe weather services on the Highways England road network.
Tesco's UK and Ireland chief executive Charles Wilson is stepping down as he recovers from throat cancer.
Wilson has been undergoing daily radiotherapy in recent months, the company said, adding that he has “responded very well” to the treatment. He will remain on the executive committee and will focus on the Booker wholesale business that Tesco bought earlier this year.