London pre-open: Stocks seen weaker on Trump healthcare fail, Brexit
London stocks were set for a weaker open on Monday following a downbeat session in Asia, after Republican leaders withdrew Donald Trump's healthcare bill at the end of last week due to a lack of support.
The FTSE 100 was expected to open 43 points lower at 7,293.
CMC Markets' Michael Hewson said: "President Trump is already having to row back on his assertion that tax reform would have to wait until health reform had been dealt with. The President’s action in pulling the health care bill is undoubtedly a setback particularly since distaste for Obamacare was one area where there was a great deal of consensus amongst Republicans.
"The inability of the President to gain the required support here doesn’t bode well for further interactions with respect to other areas of reform on tax and banking as well as his infrastructure plans, though approval plans for the Keystone pipeline did get the green light on Friday."
In addition investors will be looking towards Wednesday, when Prime Minister Theresa May is set to trigger Article 50 and kick off formal divorce proceedings with the EU - a move that could prompt some sterling weakness in the short term.
There are no major UK data releases due.
In corporate news, BT has been fined £42m by regulator Ofcom for cutting compensation to rivals for delays in providing high speed broadband.
The company will now have to pay £300m in compensation, Ofcom added.
The fine includes a 30% discount for BT admitting its liabilities. It was also ordered to pay £0.3m for failing to provide information.
Old Mutual has struck a deal to offload almost half of its stake in its asset management business for $446m.
Following the sale to HNA Capital US, Old Mutual's will have a 25.9% holding in OM Asset Management, down from 50.8%.
Greencoat UK Wind has acquired Langhope Rig Wind Farm from GE unit, GE Energy Financial Services, for a total consideration of £39.8m.
The company said the acquisition, which completed on 24 March 2017, was funded by Greencoat's revolving credit facility at £37m as well as cash resources of £2.8m.
Energy services firm Wood Group has extended its North Sea contract with explorer Premier Oil for a further two years in a deal worth $50m and which will secure more than 150 jobs.
The company will provide topside operations and maintenance services to the Balmoral floating production vessel in the Central North Sea and the Solan installation, West of Shetland to support Premier Oil’s work in the region.