London pre-open: Stocks to slide as Russia seizes Ukraine nuclear plant
London stocks were set to slide at the open on Friday following reports that Russia had seized a Ukrainian nuclear plant after shelling it.
The FTSE 100 was called to open 80 points lower at 7,15.
CMC Markets analyst Michael Hewson said: "Markets in Asia have taken another leg lower this morning after reports that one of Ukraine’s nuclear power stations, at Zaporizhzhia had caught fire after being shelled by Russian forces.
"Putting to one side that it takes a special kind of stupid to start firing on a nuclear power station, it’s doubly incomprehensible and reckless given Russia’s experience with Chernobyl nearby, and the potential impacts on Russia itself, as well as Europe, from any potential fallout.
"The environmental damage in that region alone has rendered the agricultural land there unusable for years, and further damage from another nuclear meltdown would be catastrophic. Early reports suggest the fire is under control but as an indication of the lengths Russia will go to achieve its goals, it’s an even more worrying development, sending wheat and corn prices soaring.
"Early indications suggest that the fire hasn’t damaged essential equipment, is now out, and that there are currently no changes in radiation levels.
"Because of this new development, its set to be another lousy start for European markets as we look to another big week of losses for the German DAX, with the index set to open at a fresh one year low. The FTSE 100 is also set to see another big plunge after falling over 2.5% yesterday, as we loo, although it is still above its January lows."
In corporate news, retail property owner Hammerson reported a rise in adjusted earnings as the easing of Covid restrictions saw a rebound of footfall to its shopping centres.
The company reported earnings of £81m, up from £37m a year ago. Gross rental income fell to £241.6m from £287m due to disposals during the year. Hammerson’s loss for the year on an IFRS basis narrowed to £430m form £1.7bn.
Morgan Advanced Materials said it swung to a full-year pre-tax profit as demand recovered strongly across the global economy.
In the year to 31 December 2021, the group swung to a statutory pre-tax profit of £104.3m from a loss of £13.1m the year before, with revenues up 4.4% at £950.5m.