London pre-open: Stocks seen down amid China-US tensions

(Sharecast News) - London stocks were set to fall at the open on Tuesday amid tensions between the US and China. The FTSE 100 was called to open 30 points lower at 7,383.

CMC Markets analyst Michael Hewson said: "After a strong finish to July, European and US markets got off to a cautious start to the month of August, with early gains giving way to weakness as China, US tensions ramped up on reports that US House Speaker Nancy Pelosi is due to visit Taiwan later this evening.

"These reports prompted some dark threats from China that the PLA would not stand idly if she attempted to visit what is considered by China their sovereign territory without permission. These tensions have spilled over into today's Asia session, as we look ahead to a lower European open."

In corporate news, BP said its underlying cost replacement profit rose to $8.45bn in the second quarter from $6.25m in the first, coming in well ahead of analysts' expectations of $6.8bn.

This was driven by strong realised refining margins, a continuing "exceptional" oil trading performance and higher liquids realisations, BP said.

High Street bakery chain Greggs reported a 22.4% rise in like-for-like (LFL) sales for the half-year as trading normalised after the lifting of Covid restrictions. Total sales for the 26 weeks to July 2 were up 27.1% to £694.5 million.

Software group Sage said that it had "performed strongly" in the first nine months of the year, with momentum continuing to build.

Sage stated total organic revenue was up 6% to £1.41bn, with recurring revenues growing 9% to £1.33bn and other revenues slipping 25% to £82.0m.

In the third quarter, recurring revenues grew 10% to £464.0m, with growth accelerating as the year progressed, supported by the firm's continued investment in sales, marketing and innovation.