London pre-open: Stocks to edge up ahead of manufacturing, industrial production data
London stocks were set to edge higher at the open on Friday, recovering from losses in the previous session as investors eyed the release of key manufacturing and industrial production data and the continuation of Brexit talks.
The FTSE 100 is expected to open 13 points higher at 7,497.
Manufacturing and industrial production figures are due at 0930 GMT, along with the goods trade balance.
CMC Markets analyst David Madden said: “The solid service figures from the UK last week backed up the argument the Bank of England were right to raise interest rates at the latest meeting.
“The BoE were dovish in their outlook, and traders aren’t factoring in another rate hike until well into 2018. With the bar set so low, a string of robust economic indicators from the UK could greatly alter the perception about when the UK central bank might hike again. Next week, the UK CPI and average earning figures could add some much needed volatility to the pound.”
Meanwhile, Brexit talks - which resumed on Thursday - will continue to be in focus.
Oanda analyst Craig Erlam said: "Given how past negotiations have gone I’m not optimistic that the gap between the two sides will be closed yet. With Theresa May’s looking very vulnerable at home and with the EU not wanting a change of leadership at this stage, it’s possible that the Prime Ministers weakness may help the negotiations progress in order to give her a domestic boost. That said, the EU isn’t going to be overly charitable when it comes to May’s cause and so the UK will have to make more effort on the bill before any progress can be made."
In corporate news, Vedanta Resources reported revenue growth of 39% year-on-year in its first half, to $6.8bn, while EBITDA was ahead 37% to $1.7bn, which the board said was primarily due to higher volumes and strong commodity prices. The company said its adjusted EBITDA margin for the six months to 30 September was 34%, up from 33% a year ago.
Student accommodation developer and manager Unite Group has exchanged contracts to acquire a development site in Leeds on a subject-to-planning basis. The FTSE 250 company said the site, located in the city centre near to the University of Leeds and Leeds Beckett University, will provide a home for more than 1,000 students. It said he total development cost was expected to be around £80m, and would be funded from internally generated sources.
Galliford Try said on Friday that it continues to see good market conditions across its housebuilding, regeneration and construction businesses.