London pre-open: Stocks seen touch weaker ahead of manufacturing data

London stocks were set for a slightly weaker open on Wednesday after the top-flight index closed at a record high in the previous session and as investors looked to some key data releases.

The FTSE 100 was expected to open six points lower at 7,725.

On the data front, UK manufacturing and industrial production and the goods trade balance are due at 0930 GMT.

CMC Markets analyst Michael Hewson said: “It’s an important day for UK data today with the latest manufacturing and industrial production data for November due out later this morning.

“Manufacturing has been a standout performer for the UK in Q4, if various independent surveys are to be believed, so it would be a surprise if today’s ONS announcements don’t confirm that picture.

“Expectations are for a rise of 0.3% for both manufacturing and industrial production, both significant improvements on the October numbers, while the latest trade balance data is expected to show a deficit of £1.5bn.”

In corporate news, housebuilder Taylor Wimpey said 2017 results would be in line with forecasts, and expected to achieve further growth and performance improvement in 2018.

Taylor said it should report a full year operating profit margin of around 21.2%, up from 20.8% and a return on net operating assets of more than 32% against 30.7%.

Total home completions increased by 5% to 14,541, including joint ventures.

After a strong Christmas trading period, Sainsbury's said full year profits are now likely to beat the current consensus forecast.
Over the 15 weeks to 6 January, the supermarket group increased sales 1.1% on a like-for-like basis, excluding fuel. Total sales for the third quarter period were up 1.2%, with grocery and clothing up 2.3% and 1% but the mainly-Argos general merchandise arm falling 1.4%.