London pre-open: Miners expected to weigh on China data

London stocks are expected to fall as October begins as disappointing data from China counterbalances a helpful weakening of the pound.

The FTSE 100 was being called 14 points lower by traders in the City, having finished the prior week at 7,510.2.

Markets across the globe are rallying on an improved picture for global trade after Canada and the US were reported to have reached an agreement on how to revamp Nafta.

Dampening down some of the uncertainty around global trade, the two countries hammered out a deal to join up with the agreement reached between the US and Mexico in August.

This sent S&P 500 futures shooting up towards record territory, whilst Japanese yen tumbled to a fresh 2018 low versus the dollar on diminished safe haven demand.

FTSE futures are bucking the trend, noted Jasper Lawler, analyst at London Capital Group: "The FTSE is pointing to a lower start to trading on the opening bell, with miners expected to weigh heavily. Metals across the board traded lower overnight following yet another round of disappointing data from China."

China's manufacturing purchasing managers index fell much more than expected in September to from 51.3 to 50.8, versus the 51.2 expected.

"The sector just managing to remain in expansion is the clearest sign yet of the impact of the US trade tensions on the Chinese economy. Miners traced metal prices lower in Australia, a trend which looks set to be followed by the heavily weighted miners on the FTSE," Lawler said.

Later in the morning the UK manufacturing PMI is expected to show a fall to 52.5 from 52.8.

At the same time, 0930 BST, the Bank of England will release figures on mortgage lending and consumer credit for August.

In a quiet day for corporate news in London, AstraZeneca said it had agreed a deal with Cheplapharm Arzneimittel for the commercial rights to Atacand and Atacand Plus heart and hypertension treatments. AstraZeneca has received $200m from Cheplapharm, with a time-bound payment of $10m as well as sales-contingent milestones payable in future.

Computacenter said it had bought US-based IT firm FusionStorm for up to $90m (£69m) plus $45m in refinancing. The FTSE 250 company said it would integrate its existing US business with FusionStorm leading to a 50% rise in headcount in the Americas region.

Assura, the healthcare property developer, bought 39 medical centres and completed two developments at a total cost of £108.2m in the six months to 30 September. Chief executive Jonathan Murphy said there was "good momentum" and with a strong pipeline of opportunities the board was confident in the outlook.