London pre-open: Stocks seen higher on positive US, Asian cues
London stocks were set to kick off the month of November on the front foot on Wednesday, tracking positive sessions in the US and Asia as investors eye rate decisions on both sides of the pond.
The FTSE 100 was expected to open 22 points higher at 7,515.
A survey released earlier by Nationwide revealed that UK house price growth ticked up a little to a three-month high in October. House prices increased 2.5% on the year versus 2.3% in September, beating analysts' expectations for a slowdown to 2.2%. On the month, prices were up 0.2%, in line with expectations but down from 0.4%.
Still to come, Markit's manufacturing PMI is at 0930 GMT, while the Federal Reserve's latest policy announcement is at 1800 GNT, although no change to rates is expected.
As far as the UK is concerned, the Bank of England will make its policy announcement on Thursday amid expectations of the first rate hike since 2007.
Investors will also be digesting Chinese data released earlier. The Caixin/Markit manufacturing purchasing managers' index remained steady at 51.0 in October. Which was I line with expectations and above the 50 level that separates expansion from contraction.
In corporate news, Next continued to sustain declines in full price sales from its shops in the third quarter but thanks to strong online and catalogue growth the clothing retailer marched on towards its full year targets. Full price sales in the third quarter were up 1.3% on last year and sales in the nine months of the year to 29 October are down 0.3%.
Paddy Power Betfair said trading was good in the third quarter, prompting the bookmaker to make a small upgrade to its annual profit guidance. Revenue rose 9% to £440m in the three months to the end of September, helped by strong growth at international operations. Underlying earnings increased 7% to £121m.
AstraZeneca and its haematology research and development ‘centre of excellence’, Acerta Pharma, announced on Wednesday that the US Food and Drug Administration has granted accelerated approval to Calquence (acalabrutinib). The FTSE 100 drugmaker described Calquence as a kinase inhibitor indicated for the treatment of adult patients with mantle cell lymphoma who have received at least one prior therapy.
SEGRO has acquired a fully let 390,000 square foot big box warehouse in the Midlands region from Legal & General’s LGIM Real Assets, in exchange for Kingsland Business Park, which is a multi-let industrial estate in Basingstoke, and a balancing cash payment. The FTSE 100 firm said the warehouse is located in Crick, which it described as a “prime location” close to junction 18 of the M1 motorway, and is let to pet food producer Butcher's Pet Care.