London pre-open: Stocks seen flat as investors sift through earnings

London stocks were set for a muted open on Wednesday following mixed cues from the US and Asia, with investors set to sift through a raft of earnings.

The FTSE 100 was expected to open unchanged at 7,342.

CMC Markets analyst Michael Hewson said: "While European markets enjoyed a bit of rebound yesterday they didn’t really come close to reversing the Monday post Macron sell-off that came in the aftermath of Sunday’s confirmation of his winning of the French Presidency, though US markets managed to post more new record highs before slipping back in late trade.

"This would seem to suggest that while markets are relieved at not having to fret any more about the prospect of a political and populist upheaval in Europe, there is some uncertainty as to whether we can go higher from here or whether we need a brief pullback first. Either way investors don’t appear to be too concerned about the risks of sharp selloffs given the low levels seen in various index volatility indicators which are sitting at multi year lows."

In corporate news, advertising revenue fell at ITV in the first quarter and is expected to remain down for the first half, though production sales from its Studios arm and online growth were both strong.

Total external revenue shrank 3% to £731m in the three months ended 31 March, with net advertising revenue down 9% and expected to be down 8-9% for the first half.

Paddy Power Betfair announced its entry into the daily fantasy sports market in the United States, with the acquisition of an early-stage operator, DRAFT,

The company said DRAFT was mobile-led, had a differentiated product and a strong management team.

Initial cash payable on consideration was $19m, with up to another $29m payable over the next four years, depending on performance.

Housebuilder Barratt Developments said it expects pre-tax profit for the full year 2017 is expected to be at the top end of current analyst estimates of between £675m and £733m.

It also said it expects completions for the year of around 17,350, which would be the highest level in nine years.

There are no major UK data releases due.