(Sharecast News) - London stocks were set to nudge a little higher at the open on Tuesday following strong gains in the previous session, with all eyes on Brexit talks.
The FTSE 100 was called to open seven points higher at 5,944, having gained sharply on Monday as the pound slid against the dollar amid fears of a no-deal Brexit.
Naeem Aslam, chief market analyst at Ava Trade, said: "The UK is inching closer to a no-deal Brexit. This is because of no constructive conversation on the Brexit front. The country's economy is on track to experience one of the largest contractions -9.87%, and it may take a few years for us to see any recovery.
"The best possible solution to soften Brexit's blow is to have more constructive negotiations rather than bullying. The EU has shown several times to the UK that it can't have things both ways. Leaving the EU has a cost, and the UK must be prepared to pay that cost. The issue now is to have a Brexit conversation more constructively, helping the country's economy recover."
In corporate news, JD Sports Fashion forecast annual pre-tax profits of at least £265m as it scrapped an interim dividend and reported a slump in half-year earnings caused by the coronavirus pandemic.
The High Street chain said Covid-19 remained an "ongoing challenge" as countries reimposed lockdown measures, forcing temporary store closures amid persistently weak retail footfall. Pre-tax profits for the six months to August 1 fell to £41.5m from £129.9m.
Vistry Group announced a "strong start" to the second half in its interim resulta, with a sales rate 20% ahead of the prior year since 1 July, at 0.73 sales per active site per week.
The FTSE 250 housebuilder said its adjusted revenue for the first half was up 40% at £660.9m, although its adjusted operating profit slid 72% to £21.2m.
It said Covid-19 site closures "significantly" impacted housebuilding in the first half, as well as output and performance, although its production capacity was back to "near normal" levels from 1 July.