London pre-open: Stocks to edge lower as Ukraine crisis intensifies

London stocks were set to edge lower at the open on Tuesday as the crisis in Ukraine continues to weigh on sentiment.

The FTSE 100 was called to open around 19 points lower at 7,439.00.

Swissquote senior analyst Ipek Ozkardeskay said: "Just a week ago, we were living in a united world, where there were tensions. But now, the world is divided between the Russians and the rest. The economic implications are as severe as the real world impacts and the risk appetite is limited.

"Yesterday’s talks in Belarus between the Ukrainian and Russian committees were overshadowed by the intensifying military fight in Ukraine. Putin, who seems frustrated with the Ukrainian resistance, and the Westerns sanctions imposed sanctions to the West on his turn by closing its airspace to 36 countries and banning its residents from transferring hard currency abroad.

"The direct implication of Russian sanctions was a surge in cryptocurrency prices, and especially Bitcoin. The coin, which was moving along with the risk assets less than a couple of days ago is now The Asset that Russians and Ukrainians rely on to get their funds out of the traditional system which has become very hostile to them. It is reported that Bitcoin purchases using Rubles and Hryvnias soared as Russia imposed sanctions on its citizens."

In UK corporate news, Abrdn's annual profit rose as the asset manager posted higher full-year revenue for the first time since the it was formed from a merger in 2017. Adjusted operating profit for the year to the end of December rose 47% to £323m as revenue increased to £1.52bn from £1.43bn. Pre-tax profit under IFRS accounting rules rose to £1.12bn from £838m.

Net outflows were £3.2bn compared with £12.3bn a year earlier. Abrdn kept its annual dividend unchanged at 14.6p a share.

GlaxoSmithKline said the European Medicines Agency has accepted a marketing authorisation application (MAA) for its daprodustat treatment of chronic kidney disease (CKD). The MAA includes positive data from the ASCEND Phase III clinical trial programme, which included five pivotal studies assessing the efficacy and safety of daprodustat for the treatment of anaemia across the course of CKD.

Critical power control solutions manufacturer XP Power saw reported profits slump in 2021 despite improved order intake and a modest uptick in revenues. XP Power said full-year operating profits had fallen 21% to £29.7m and pre-tax profits had sunk 20% to £28.4m as a 210 basis point decrease in gross margins to 45.1% offset a 33% improvement in order intake £343.4m and 3% revenue growth to £240.3m.