London pre-open: Stocks seen lower as investors pause for breath

London stocks looked set for a weaker open on Wednesday following an uninspiring session in Asia, as investors pause for breath.

The FTSE 100 was set to open 15 points lower than Tuesday’s close at 6,836.

CMC Markets’ Michael Hewson said: “The pound has continued its slide, declining for the fifth day in a row after MPC member Ian McCafferty indicated that the Bank of England could ease further by the end of the year. This was despite the fact that he was one of three MPC members to dissent with respect to the implementation of further QE. These comments more than offset some broadly better than expected economic data, as sterling continued to get driven lower.

“The nature of Mr McCafferty’s intervention was significant in that he was one of two policymakers to vote for a rate rise over the past few years, though the dovish nature of his comments isn’t exactly consistent with his dissent on extra QE last week.”

There are no major UK data releases due.

In corporate news, Land Securities has signed up three new long-term tenants for its 20 Eastbourne Terrace office building next to London's Paddington underground station.

With US software company Citrix taking two floors and another let to medical device manufacturer LivaNova, the building is now 90% let with only two floors still available.

Lookers announced on Wednesday that it has entered into a conditional agreement to sell its parts business to Alliance Automotive, on a debt free and cash free basis, for a consideration of £120m payable in cash on completion.

The FTSE 250 firm’s parts division is a distributor of automotive parts which includes brands such as BTN Turbo, FPS and Apec Braking.

Alliance Automotive is part of Alliance Automotive Group, a major European distributor of automotive and commercial vehicle parts to the automotive aftermarket.

Peppa Pig owner Entertainment One said on Wednesday that it has rejected a takeover offer of 236p per share, which was reported to have been made by broadcaster ITV.

“The board of eOne has reviewed the proposal and has unanimously rejected it on the basis that it fundamentally undervalues the company and its prospects,” it said.