London pre-open: Shares seen inching higher, Chinese data weigh

Stocks are seen starting the session slightly higher following telephone contacts over the weekend between US president Donald Trump and his Chinese counterpart aimed at calming the situation, although a spate of weak data out of the Asian giant are expected to weigh on sentiment.

On Saturday, Chinese president Xi Jinping told Trump in a phone conversation that all sides needed to show restraint and avoid making inflamatory remarks, according to Chinese state television.

Trump and Xi were in agreement that North Korea needed to avoid provocative behaviour and on the desirability of ridding the Korean peninsula of nuclear armament.

Against that backdrop, the Footsie was being called to start the session with gains of 17 points from Friday's closing level of 7,309.96.

Commenting on the situation in markets, Crag Erlam, senior market analyst at Oanda, said: "what we’re seeing today is relief at the situation not deteriorating over the weekend, something traders were clearly wary of towards the end of last week.

"Still, given the unpredictability of those involved, traders are likely to remain on edge and I don’t think it will take much for the safe haven rush to resume. In the meantime, we’re seeing a small unwinding of those risk aversion trades, with Gold trading slightly lower and the yen and Swiss franc off against the dollar, pound and euro."

In terms of data, overnight China's National Bureau of Statistics reported that industrial production in the country slowed to a 6.4% year-on-year (consensus: 7.1%) clip in July from a 7.6% pace in the month before.

Retail sales were also on the weak side, printing at 10.4% in terms of the year-on-year rate of change (consensus: 10.8%), down from 11.0% in the previous month.

The same was true of the the latest figures for fixed asset investment, which slowed from a 8.6% rise over the first six months to June to 8.3% for the year to the end of July.

No economic data were set for release in the UK.

Limited visibility on revenues at Clarkson

Clarkson saw profits tax before jump by a quarter to reach £21.9m at the half-year stage as the shipping services group's top line increased from £147.2m to £156.8m. On an underlying basis, profits before tax were ahead from £21.8m to £24.5m. The interim pay-out was raised from 22p to 23p with a net funds, the group's preferred measure of liquidity, rising from £46.7m to £71.4m. The company said it was seeing signs of rebalancing in its markets but low newbuilding activity meant activity was continuing to be dominated by spot business, limiting its forward visibility on revenues.

Standard Life and Aberdeen Asset Management completed their merger on Monday and became Standard Life Aberdeen, also confirming the make-up of the new combined board. SL's Gerry Grimstone is chairman and Aberdeen's Simon Troughton his deputy, guiding co-chief executives Keith Skeoch and Martin Gilbert, with Rod Paris as chief investment officer and Bill Rattray as chief financial officer.

Greencoat UK Wind has agreed to acquire the North Hoyle and Slieve Divena wind farms from institutional investors for close to £105m. The acquisitions, which are expected to complete in August 2017, will add 90 MW capacity and are being funded by an existing revolving credit facility.