London pre-open: Stocks seen higher ahead of PMIs
London stocks were set to rise on Friday following losses in the previous session as investors eyed readings on the UK manufacturing and services sectors and continued to keep an eye on trade developments.
The FTSE 100 was called to open 19 points higher at 7,257.
CMC Markets analyst David Madden said: "This week there has been a lot of chatter and not much concrete news about what is going on, so dealers haven’t been overly excited. Yesterday was a bit of a downbeat day as stocks lost ground, but if traders were genuinely fearful about the trade story, stocks would be much lower.
"China has claimed the US government are interfering in their affairs in relation to the Hong Kong bill. Beijing feel the US should mind their own business, and the move by the US could set things back in terms of the talks. The growing unrest in Hong Kong is worrying, but Beijing are unlikely to give into the US easily on the subject."
On home shores, Markit's flash services and manufacturing PMIs are due at 0930 GMT.
"The uncertainty surrounding Brexit has caused an economic malaise in the UK, and investment has tapered off, so the reports will provide an insight into the health of the British economy," said Madden. In corporate news, online real estate agent Rightmove said it had appointed Andrew Fisher as non-executive Chairman with effect from January 1, 2020.
In corporate news, online real estate agent Rightmove said it had appointed Andrew Fisher as non-executive Chairman with effect from January 1, 2020.
Fisher will succeed Scott Forbes, who retires at the end of the year after more than 14 years in the post. He was previously chief executive and chairman of music mobile application Shazam.
He is currently a non-executive director of both Marks & Spencer and Moneysupermarket.com and was previously a non-executive director at Merlin Entertainments.
Playtech warned that its full year adjusted earnings before interest, tax, depreciation and amortisation are now expected to fall below prior expectations after its TradeTech division faced highly challenging trading conditions during September and October.
The gambling software developer added that its core B2B gambling and Snaitech segments have continued to exceed management expectations, while trading in Asia has remained stable.
Industrial thread maker Coats Group said sales grew 1% in the year to October led by growth in both its apparel and footwear and performance materials units.
For the four months from July, group sales were flat on a constant currency basis, reflecting slightly lower activity in both apparel and footwear and performance materials and against the strong growth of 4% in the comparative period in 2018.On a reported basis, group sales in the period were down 1% year-on-year, an improvement on the 3% decline in the first half, due to a softening of foreign exchange headwinds.