London pre-open: Stocks set to recover after China data

London stocks were set for a positive open on Friday following heavy losses in the previous session, with the latest Chinese data helping to assuage investors’ concerns despite growing worries about the coronavirus.

The FTSE 100 was called to open 38 points higher at 7,420.

CMC Markets analyst David Madden said: "The World Health Organisation changed their view last night, as the organisation declared the coronavirus situation a global health emergency. At the time of the announcement, there were in excess of 8,200 confirmed infections around the world.

"Overnight China announced a couple of important economic indicators. The manufacturing PMI reading was 50.0, meeting forecasts. The previous level was 50.2. The non-manufacturing PMI level came in at 54.1, while the consensus estimate was 53.1, and keep in mind the prior reading was 53.5. The largely positive updates helped bring some calm to stock markets in Asia. The Hang Seng and the Nikkei 225 are in positive territory despite the deepening health crisis in China - where the death toll has risen again."

In UK corporate news, Investec said it intended to float its asset management business, now called Ninety One.The company said it would proceed with an initial public offering subject to shareholders approving a demerger of the business in a vote on February 10.

Elsewhere, Aston Martin said that a consortium led by Canadian billionaire Lawrence Stroll will buy a 20% stake in the luxury car maker for nearly £200m. In addition the company will issue a £318m rights issue at £4 per share after the release of its 2019 preliminary results.