London pre-open: Stocks to slump after weak US, Asian sessions

London stocks were set to slump at the open on Friday following weak sessions in the US and Asia.

The FTSE 100 was called to open 56 points lower at 7,030.

CMC Markets analyst Michael Hewson said: "Today’s European open looks set for a negative start, after yesterday’s lower finish from the US, as well as sharp declines in Asia, although Chinese markets are closed, as we look ahead to a full day of data, ranging from manufacturing PMIs to the latest inflation numbers from the EU, as well as US PCE numbers."

In corporate news, online electrical retailer AO World said it expected adjusted core earnings to be £35m - £50m, driven by the peak Christmas trading period and despite the severe shortage of delivery drivers in the UK.

The company said revenues for the six months to September 30 grew 5% year on year and 66% on a two year basis.

"The challenging market dynamics in both the UK and Germany resulted in lower volumes than expected which affected operational leverage, particularly in the second quarter," it said.

Elsewhere, pub chain JD Wetherspoon reported a massive widening of its full-year losses as revenues tumbled as its pubs were forced to shut due to Covid measures.

In the year to 25 July, pre-tax losses widened to £154.7m from £34.1m the year before, with revenues down 38.8% to £772.6m.