London pre-open: Stocks seen higher on positive US cues

London stocks were set for a positive open on Tuesday, taking their cue from the US, where the Dow and S&P 500 closed at records thanks to a rebound in the technology sector.

The FTSE 100 was expected to open 10 points higher at 7,533.

There are no major UK data releases due but Bank of England governor Mark Carney will be making a speech at Mansion House at 0830 BST.

Markets participants will continue to keep a close on Brexit negotiations after the UK agreed on day one to the EU's demand for a two-phased negotiation whereby the divorce will be settled before any future trade deal can be negotiated. Brexit secretary David Davis had wanted the two strands of negotiations to be staged in parallel, but on Monday both sides agreed to set up working groups on EU citizens' rights and the size, the divorce bill and borders, but not trade. Davis had previously said that not settling both issues simultaneously would be "the row of the summer".

Investors will also be digested the latest economic forecast from the Confederation of British Industry, which said it now expects 1.6% growth for 2017 and 1.4% for 2018, compared to previous expectations of 1.3% and 1.1%, respectively.

In corporate news, the Serious Fraud Office has charged Barclays and four former executives with conspiracy to commit fraud with regard to the bank’s 2008 capital raising from Qatar.

Wolseley turned up the dial on sales in the third quarter, as the heating and plumbing group enjoyed good growth from its main US residential and commercial markets and improving industrial markets.

The group, which is changing its corporate name to Ferguson to reflect the importance of its main US brand, saw sales rise 16.7% to £4.27bn in the three months to the end of April, up 4.6% at constant exchange rates and 6.6% on a like-for-like basis.

Ultra Electronics has been awarded a "major" surveillance and security system contract valued at $18m over the next 26 months.

In addition, the company's Communication & Integrated Systems business will provide five years of specialist support over the course of the system's use.

International service company Serco Group has signed the contract and completed financial agreements to operate the New Grafton Correctional Centre in New South Wales, Australia, having been named the ‘preferred bidder’ in March.

The FTSE 250 company said the contract for operation was expected to commence in 2020, with the estimated total contract value to Serco over a 20-year term being approximately AUD2.6bn (£1.5bn).