London pre-open: Stocks seen lower after Tuesday's big gains

London stocks were set to edge lower at the open on Wednesday following strong gains in the previous session when weak services data weighed on sterling and solid results propelled oil giant BP higher.

The FTSE 100 was called to open 14 points lower at 7,163.

CMC Markets analyst Michael Hewson said: "There appears to be little doubt that while the UK economy is slowing, it is not alone in its sclerosis with Italy and France out in front, with even weaker data, while the German economy is also struggling. Against this sort of economic backdrop, it ill behoves politicians on both sides of the Channel to play Russian roulette with the Brexit negotiations. The EU has consistently stated that it feels that the UK has more to lose from a disorderly Brexit, with both sides ramping up preparations for a no deal scenario.

"The risk with this sort of calculation is, that at a time when the financial system in Europe is anything but robust, the fallout of a no deal Brexit could bring the roof crashing down on Europe’s head, with serious consequences for the global economy."

In corporate news, Barratt Developments grew profits 19% in the first half of its trading year as Britain's largest housebuilder said it was in a strong position in spite of the uncertainty around Brexit.

The company completed 7,622 homes during the six months to 31 December, a 4.1% increase on the year before, to grow revenue 7% to £2.1bn and profit before tax to £408m.

CYBG reported "good progress" with the integration of Virgin Money since the merger was completed in October, with group mortgage lending up 1.4% in the first quarter of its financial year but amid pressure on margins in the competitive UK mortgage market.