London pre-open: Stocks to rise after Tuesday's losses

London stocks were set to rise at the open on Wednesday following a weak session a day earlier, after US Treasury Secretary Janet Yellen said interest rates were likely to rise.

The FTSE 100 was called to open 40 points higher at 6,963.

CMC Markets analyst Michael Hewson said: "With US markets closing off their lows, today’s European market opens is likely to be a positive one, as we look ahead to another busy day of economic data.

"One of the main bright spots amidst the gloom of the economic rebound in Europe has been the manufacturing sector and its resilience in the face of restrictions which have, for the most part been in place in some form or other since October last year.

"With some prospect of a modest easing in the summer months political leaders across Europe’s big four economies will have been grateful for this, and with the services sector now starting to show signs of life, amidst the economic bleeding, there are signs that businesses are learning to adapt to some of the restrictions."

In corporate news, Virgin Money said first-half profit more than doubled as Covid-19 impairment charges tumbled.

The company said underlying pre-tax profits came in at £245m from £120m a year ago, with a return to statutory profit before tax of £72m and impairment charge of £38m from £232m.

ITV said it was cautiously optimistic about the year ahead as advertising revenue recovered from the Covid-19 crisis.

Total external revenue rose 2% to £709m in the three months to the end of March. ITV Studios revenue rose 9% to £372m as media and entertainment income fell 3% to £484m.

Advertising revenue fell 6% in the first quarter but rose 68% in April with May expected to be up 85% and a rise of 85-90% predicted for June.