London pre-open: Stocks seen muted ahead of data slew

London stocks were set for a muted open on Tuesday as investors eyed the release of UK mortgage approvals and consumer credit data.

The FTSE 100 was called to open three points lower at 7,070.

CMC Markets analyst Michael Hewson said: "Today’s European open looks set for a tepid start after the losses of yesterday, after Asia markets also lost ground as concerns grow that the race between the vaccine and the virus is being lost.

"On the data front the latest UK lending data is expected to show that mortgage borrowing increased in May by £4.4bn, and up from £3.3bn in April as borrowers look to take advantage of the recent extension to the stamp duty holiday until the end of this month. Mortgage approvals appear to have stabilised between 80k and 90k a month with expectations of 85.8k in May.

"Net consumer credit on the other hand has been more subdued with net repayments every month this year. In fact, over the last 14 months UK consumers have paid down credit balances in 12 of those months, with households depositing an extra £10.7bn in their bank accounts in April. This morning’s credit numbers for May are expected to see the first lending increase since August last year."

In corporate news, US private equity firm Clayton, Dubilier & Rice confirmed its increased final £2.7bn offer for Dublin-based UDG Healthcare.

CD&R, which is also seeking to take over the UK supermarket chain Morrisons, lifted its bid to £10.80 a share, UDG said in a statement to the stock market, adding that the board had agreed to its terms.

Barratt Developments has hired Mike Scott from Countryside Properties as its next chief financial officer. Barratt said Scott's arrival date would be announced in due course and Countryside is looking for a replacement.