London pre-open: Stocks to rise ahead of GDP data

London stocks were set for a firmer open on Tuesday following a positive session on Wall Street, as investors eyed the release of the latest UK GDP figures.

The FTSE 100 was called to open 50 points higher at 7,496.

London Capital Group analyst Jasper Lawler said: "There have now been more than 1000 deaths from the coronavirus with 42,700 cases. That makes a mortality rate at 1% according to Imperial College London. Tesla and Ford are returning to production in China but others including Ford are still closed until next week. The Mobile World Congress is losing more attendee companies by the day with Intel the latest to pull out.

"Markets are moving in defiance of coronavirus fears. US indices touched more record highs on Monday and Chinese stocks have notched up a sixth day of gains.

"European shares are on course for a higher open on Tuesday. Chattering central bankers and the Democratic Primaries in New Hampshire will be a focus, while investors monitor the coronavirus."

On the data front, fourth-quarter UK GDP data is due at 0930 GMT, along with manufacturing and industrial production figures.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Today’s data could confirm an anemic growth in the four the quarter, and a stagnant industrial and manufacturing production in December. The fact that business surveys in January hinted at a bounce in activity posterior to Boris Johnson’s victory may attenuate the impact of soft production and growth data. But the optimism in surveys is now being eaten up as investors realize that the second - and the most decisive phase of Brexit negotiations will likely continue weighing on businesses.

"In fact, avoiding an immediate no-deal Brexit didn’t necessarily save the UK from walking out of the EU without a deal at the very end. There are some 20% chances for that happening and this risk is clearly being underpriced by the market at the current prices."

In corporate news, Ocado's annual loss more than quadrupled as costs rose and the online grocer and logistics company paid for the destruction by fire of a high-tech warehouse. Pretax loss for the year to the end of December widened to £214.5m from £44.4m a year earlier. Group revenue rose 9.9% to £1.76bn.

Food producer Cranswick said it had bought the Buckle family's pig farming and rearing operations as well as the family's 50% stake in the White Rose Farms joint venture it set up with the family in 2018.

The enlarged pig enterprise, to be known as White Rose Farms, specialises in the production of Red Tractor assured pigs in Yorkshire and will continue to be led by Rick Buckle, Cranswick said on Tuesday.The deal follows Cranswick's acquisition of Packington Pork in December and further increases Cranswick's self-sufficiency in UK pigs processed to more than 30%.