London pre-open: Stocks seen lower ahead of data, Trump speech
Stocks in London were set to open a touch lower on Wednesday as investors eyed the release of UK manufacturing and industrial production numbers and a speech by US President-elect Donald Trump.
The FTSE 100 was called to open nine points lower than Tuesday’s close at 7,266.
On the data front, UK industrial production and manufacturing production are at 0930 GMT, along with the trade balance. Trump’s news conference in New York is at 1600 GMT.
CMC Markets’ Michael Hewson said: “The latest ONS manufacturing and industrial production numbers for November are expected to show a strong rebound from the disappointing numbers seen in October, with expectations of a rise of 0.5% and 1% respectively. The sharp declines seen in the ONS October numbers were particularly disappointing given that the equivalent PMI data were quite strong, however the ONS numbers had been skewed by the shutdown of a North Sea oil field for maintenance which shouldn’t be the case this time.
“November construction output is also expected to bounce back after a 0.6% decline in October. Also due out is the November trade balance which is expected to widen out to -£3.5bn from -£1.97bn.”
In corporate news, Sainsbury's third quarter like-for-like grocery sales were only just positive but last year's acquisition Argos helped lift the group as online sales proved a decisive factor over the key festive period.
Total group sales for the 15 weeks to 7 January rose 0.8%, with group LFL sales up 1.0%. Supermarket LFLs edged up 0.1% but Argos LFLs climbed 4%.
Housebuilder Taylor Wimpey updated the market on its trading ahead of its full year results for the 2016 calendar year, with total UK home completions increasing by 4% to 13,881 during the period.
The FTSE 100 firm reported a year end order book valued at £1.68bn, down from £1.78bn a year earlier, with a stable short-term land bank of 76,000 plots.
Passenger transport operator National Express Group announced that it reached an in-principle agreement for Trenitalia, the passenger rail transportation company part of FS Italiane Group, to acquire its ‘c2c’ commuter rail franchise.
The FTSE 250 firm said completion of the acquisition is conditional upon final consent from the Department for Transport, expected to occur within the next three to four weeks.
Total consideration is expected to be in the region of £70m, resulting in a small net profit for National Express.