London pre-open: Stocks to slide as Putin puts nuclear forces on high alert

The FTSE 100 was called to open 110 points lower at 7,379.

CMC Markets analyst Michael Hewson said: "In a sign that Putin appears increasingly rattled by the way events have unfolded over the past few days, from the lack of progress on the part of the Russian military in subduing Ukraine, to the increasing polarisation of Russia itself, he took the extraordinary decision to put his nuclear armed forces on high alert.

"This comes across as a move that smacks of desperation, but it also puts the world, and Europe especially, into its most dangerous period since the 1980s at the height of the Cold War.

"Despite events over the weekend Asia markets have proved remarkably resilient, however markets here in Europe look set to get clobbered when they open later this morning, while the Russian rouble has collapsed further, trading over 20% lower and now at 107 against the US dollar."

In UK corporate news, BP is to exit its near 20% holding in state-owned oil giant Rosneft in response to Russia’s invasion of Ukraine, at an expected cost of around $25bn.

The blue chip, which has held a 19.75% stake in the Russian firm since 2013, also confirmed that chief executive Bernard Looney would resign from the Rosneft board with immediate effect. BP’s other nominated board member, former chief executive Bob Dudley, will also resign.

Primark owner AB Foods said it expected half-year sales and adjusted operating profit to be strongly ahead of last year and higher than interims in pre-Covid in 2020.

Primark sales for the first half are expected to be well over 60% ahead of last year at constant currency with an operating profit margin of around 11% as stores remained open.

Distribution and services giant Bunzl said adjusted operating profits had slipped year-on-year in 2021 despite a modest uptick in reported revenues.

Bunzl said reported adjusted operating profits were down 3.3% on 2020 at £752.8m, while adjusted pre-tax profits were 2.4% lower at £698.2m and adjusted earnings per share were 1.5% softer year-on-year at 162.5p.

The FTSE 100 firm said the fall in profits comes as full-year reported revenues inched ahead 1.7% to £10.28bn, with recovery in its base business and acquisitions more than offsetting declines in Covid-19 related sales. Revenue at constant exchange rates was 17.1% higher than 2019's pre-Covid comparative.