London pre-open: Stocks seen touch weaker following another record close

Stocks in London were set to open a touch lower on Tuesday after the index hit another record high in the previous session as Brexit worries hit the pound, despite some encouraging data out of China.

The FTSE 100 was called to open four points lower than Monday’s close at 7,233. On Monday, the index ended 28 points higher at 7,238 - the eighth consecutive record high - as the pound slid 1% against the greenback following Prime Minister Theresa May’s latest Brexit comments.

CMC Markets’ Michael Hewson said: “The pound slid sharply yesterday after weekend comments from UK Prime Minister Theresa May that suggested that staying inside the single market was not her top priority, with immigration controls likely to be one of the red lines.

“This has been a fairly clear priority for some time and with German Chancellor Angela Merkel reinforcing the EU line of no cherry picking, markets once again appear to be pricing in the prospect of a so called hard Brexit, and the extra costs that the leaving of the single market might entail, which has once again seen the pound come under pressure.”

Investors will also be eyeing the release earlier of data showing producer prices in China rose at their fastest pace since September 2011 in December. Producer prices were up 5.5% from the same month a year ago, beating expectations for a 4.5% increase.

There are no major UK data releases due but in the US, wholesale inventories are at 1500 GMT.

In corporate news, Wm Morrison said it now expects full year profit to be ahead of market consensus on the back of its strongest festive performance for seven years.

For the nine weeks to 1 January, the supermarket group grew like-for-like sales excluding fuel 2.9%, while total sales were 2.0% higher.

Gaming software development company Playtech said it expects results for the full year 2016 to be in line with market views as it announced that chief financial officer Ron Hoffman will become chief executive officer of the group’s financials divisions.

Andrew Smith, the current head of investor relations, will succeed Hoffman and join the board as an executive director with immediate effect.

Trinity Mirror confirmed it is in the "early stage of discussions" with Richard Desmond over a potential investment in some of Northern & Shell's assets.

The Daily Mirror owner said no offer has yet been made and there was no certainty that any agreement will be reached.

International distribution and outsourcing group Bunzl announced on Tuesday that it has acquired two further businesses in the UK and the US.