London pre-open: Stocks to rise as investors digest China data
London stocks were set to rise at the open on Friday following heavy losses in the previous session as investors digest a slew of Chinese data releases.
The FTSE 100 was called to open 49 points higher at 5,790.
CMC Markets analyst David Madden said: "Overnight, China announced several economic reports. The fixed asset investment reading for April was -10.3%, while the consensus estimate was -10%, and keep in mind the March update was -16%. Industrial production was 3.9% and economists were anticipating 1.5%, while the previous reading was -1.1%. Retail sales came in at -7.5%, and the forecast was -7%. The retail sales report for March was -15.8%.
"Traders responded well to the improving data from China, which is why stocks in Asia are a little higher. The European markets are on track to recoup some of yesterday’s losses."
In corporate news, group revenues at bookmaker William Hill fell by more than half in the six weeks to April 28 and the company pulled guidance as the cancellation of sports due to coronavirus lockdowns hit operations.
Total net revenue fell 57%, including an 85% plunge in retail like-for-like revenue as High Street gambling shops were closed to help stop the spread of the pandemic, the company said on Friday. William Hill also secure a waiver on loans until the end of the year.
Computacenter said business had picked up further since late April and that the first half of 2020 would be "considerably ahead" of the same period a year earlier.
The FTSE 250 company said it had picked up large technology sourcing contracts since its last update on 23 April. Computacenter said the market picture had become a little clearer but that it could not give meaningful guidance for the second half of 2020.