London pre-open: Stocks to edge lower; China manufacturing data encouraging
London stocks were set to edge lower at the open on Tuesday, with encouraging Chinese manufacturing data expected to keep losses to a minimum.
The FTSE 100 was called to open 28 points lower at 5,535.
CMC Markets analyst David Madden said: "Overnight, China posted the latest manufacturing PMI report, and the reading was 52, while the consensus estimate was 45, and the February reading was 35.7.
"The non-manufacturing PMI report was posted too, and the update was 52.3. Economists were expecting 42.1, and keep in mind the previous update was 29.6. The sharp turnaround in business activity provides hope to economies in the west that are currently in lockdown.
"The updates from China jolted the oil market higher, but keep in mind it was relatively cheap going into the data. Stocks in mainland China, Hong Kong and South Korea are higher on the back of the news. The Nikkei 225 is down on the session as forecasts found that manufacturing output in March is set to tumble by 5.3%."
In corporate news, St Modwen Properties pulled its dividend and said the board would take a 20% pay cut and would make sure all furloughed employees as a result of the coronavirus lockdown would receive full salary.
Imperial Brands said Covid-19 had no material effect on its trading so far as the tobacco and vaping company unveiled a new €3.5bn (£3.1bn) revolving credit arrangement with its lenders.