London pre-open: Stocks to follow Asian markets higher after Xi comments
London stocks were set for a positive open on Tuesday as investors welcomed a pledge by Chinese leader Xi Jinping to open up the country's economy and lower import tariffs.
The FTSE 100 was called to open 41 points higher at 7,235.
Michael Hewson, chief market analyst at CMC Markets, said that while his comments were nothing particularly new, they sent Asian markets higher and this is likely to spark a positive European open.
"Whether they translate into anything other than words is another story but for now they appear to signal a willingness for China to move forward the discussions on trade with the US," he said.
In a speech at the Boao Forum for Asia, President Xi said he will "significantly lower" tariffs on car imports this year and ease restrictions on foreign ownership in the industry as soon as possible. He also said he would expand the protection of intellectual property.
"The cold war and zero-sum mentality looks out of place in today’s world. Arrogance or only focusing one’s own interests will get nowhere. Only peaceful development and cooperation can truly bring win-win or all-win results," he said.
In UK corporate news, Card Factory promised to keep gifting investors more dividends as it posted full year results that showed growth in sales but smaller profits that are unlikely to improve much in the coming year. The FTSE 250 greeting cards retailer lifted revenues 6% to £422.1m over the year to 31 January, with like-for-like sales up 2.9%.
James Fisher and Sons said it had won a £50m 10 year integrated marine services contract by an unnamed UK-based, international, integrated energy company.
The contract, which starts in April is for the management of three vessels, oil transfer operations, buoy maintenance and diving operations in support of a UK refinery, Fisher said.
Workspace Group said it had been given planning permission for a £15m major refurbishment at The Shaftesbury Centre in west London's Ladbroke Grove.
The existing 13,000 sq. ft. building, valued at £4m at 30 September 2017, will be replaced by a new four-floor business centre, providing 41,000 sq. ft. of net lettable space, the company said.
Real estate investment trust RDI said had exchanged contracts for the disposal of the City Point office building in Leeds for £26.05m.
The sale price represented a net initial yield of 5.8% and a 15.3% premium to the last reported market value. The geared internal rate of return over the investment period was more than 20%, RDI said.