London pre-open: Stocks seen higher ahead of manufacturing PMI
(Sharecast News) - London stocks were set to kick December off on the front foot on Tuesday, taking their cue from a positive session in Asia, as investors eyed the latest reading on the UK manufacturing sector.
The FTSE 100 was called to open 37 points higher at 6,303.
CMC Markets analyst David Madden said: "Overnight, the Caixin survey of Chinese manufacturing was released and the reading came in at 54.9, and keep in mind the prior level was 53.6. The reading was the fastest rate of expansion in 10 years which underlines the recovery in China. Stocks in Asia are showing decent gains and European indices are set to recover."
On the data front, Markit's manufacturing PMI for November is at 0930 GMT.
In corporate news, mining technology provider Weir Group said it had won a £95m order to provide aftermarket components and service to the Iron Bridge magnetite project in Western Australia.
The project is a $2.6bn (£1.94bn) joint venture between Fortescue Metals Group's subsidiary FMG Magnetite and Formosa Steel and is located in the Pilbara region, around 145 kilometres south of Port Hedland.
Building materials distributor Grafton announced the acquisition of bespoke wooden staircase manufacturer StairBox for £44m.
Chief executive officer Gavin Slark said: "The acquisition of StairBox is in line with our strategy of acquiring specialist high quality businesses with attractive returns. We are delighted with this acquisition opportunity and the skills and experience that the management team under the leadership of Alex Hancock will bring to the group."
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