London pre-open: Stocks to slide amid worries about Omicron, restrictions

London stocks were set to tumble at the open on Monday amid worries about the spread of Omicron and further Covid restrictions.

The FTSE 100 was called to open 100 points lower at 7,170.

CMC Markets analyst Michael Hewson said: "With record Covid cases in the UK in the past few days, and new restrictions being implemented across Europe, it almost feels like an action replay of 12 months ago, with some scientists in the UK calling for a fresh lockdown before Christmas, in a move that is likely to be as welcome as toothache.

"In the Netherlands, the government there has announced a fresh lockdown, while in the rest of Europe governments there are holding emergency meetings on new restrictions, with France and Germany imposing bans on arrivals from the UK nationals. In Ireland, the government there has said that all bars, restaurants, and cinemas must close by 8pm.

"Meanwhile in the US President Biden’s suffered a setback when Democrat Senator Joe Manchin rejected the $2trn tax and spending plan, over concerns about rising inflation

"Against such a disruptive backdrop today’s European market open looks set to see big falls with sentiment continuing to be fragile, against a backdrop of concerns over rising inflation and central banks whose focus has shifted towards containing inflationary pressure, and a virus that threatens to overwhelm health systems across the globe."

In corporate news, Rolls-Royce said Qatar has agreed to invest £85m in its nuclear reactor business in return for a 10% stake.

The investment is being made by the emirate’s sovereign wealth fund, the Qatar Investment Authority (QIA).

Rolls said it was building a new technology solution to deliver affordable, low carbon, nuclear power. A single power station will occupy around one tenth of the size of a conventional nuclear generation site and power approximately one million homes.

Mining giant Rio Tinto has tapped Dominic Barton to succeed Simon Thompson as the company's new chairman, effective from 5 May 2022.

Prior to being appointed to the role, Barton spent over 30 years at McKinsey & Company, including six as its Asia chairman, and was also named as Canada's ambassador to China in 2019.