London pre-open: Stocks to fall; Fed minutes in Focus

London stocks were set to fall at the open on Wednesday following solid gains in the previous session.

The FTSE 100 was called to open down around 28 points at 7,477.

Naeem Aslam, chief market analyst at Ava Trade, said: "US and European Futures are trading lower as traders are likely to remain on the sidelines ahead of the major economic event, the Fed minutes, which is taking place later today.

"In addition to this, we also saw weakness creeping into the US economic data - the US ISM Manufacturing yesterday. This is something that no one wants to see because the Fed has changed its monetary policy path as it wants to increase the interest rates three times this year. The Fed needs to be careful with its policy approach as any mistake could negatively influence the US economy.

"Hence, Jerome Powell, the Fed Chairman, needs to strike a balanced approach between being hawkish and dovish. This would help the Fed fulfil its duty and improve the US economic health as well.”

In corporate news, gambling software maker Playtech and potential bidder JKO have asked Britain’s Takeover Panel for more time for the latter to declare its intentions on any takeover offer.

Playtech said it was also postponing court and shareholder meetings relating to the offer by Aristocrat Leisure Limited, previously scheduled for January 12 to February 2.

Aristocrat is the current frontrunner to acquire Playtech after the two businesses agreed to a £2.7bn deal in October.

"Playtech and JKO Play have requested the Panel set a revised deadline, aligned to this new date for the shareholder meetings, by which JKO must clarify its intentions in relation to Playtech," the company said.