London pre-open: Stocks seen lower as slowdown fears continue to weigh

London stocks were set to fall at the open on Tuesday as worries about a global slowdown continue to weigh on investors’ minds.

The FTSE 100 was called to open 40 points lower at 7,156.

CMC Markets analyst Michael Hewson said: "As we look at today's European open it's set to be a negative start after Asia markets followed the weakness from yesterday, with the only data of note set to be the German ZEW survey for July which is expected to show a sharp deterioration after a modest improvement in June."

He added: "Rising concerns that the UK economy has slowed sharply in Q2 have been weighing on the pound along with uncertainty about how committed the Bank of England is in getting on top of “current levels of inflation is acting as a drag.

"Yesterday’s comments from Bank of England governor Andrew Bailey highlight the extent of this distrust after he said he expected inflation to fall back sharply in 2023. Given that the Bank of England’s recent predictions around inflation have been about as useful as a chocolate teapot, that's quite a claim, given that the MPC thinks it will be 2% higher at 11% by the autumn."

In corporate news, landscaping products manufacturer Marshalls delivered group revenues of £348.0m in the six months ended 30 June, up 17% year-on-year.

Marshalls said that its interim revenue growth was partly due to benefits stemming from its recent acquisition of Marley, which it said "traded strongly" in the first two full months of its' ownership. Like-for-like revenues were up 7%.

Infrastructure group Balfour Beatty has sold its 67% interest in Aspire at Discovery Park, the on-campus student accommodation at Purdue University in West Lafayette, Indiana.

Balfour Beatty said Purdue Research Foundation will purchase the property for $150.0m, with the transaction expected to complete in August.

Disposal proceeds will be used to repay debt outstanding against the property and transaction fees, with the remainder distributed to Balfour Beatty and co-investors.