London pre-open: Stocks seen flat as manufacturing data eyed

Stocks in London were set to open little changed on Tuesday as investors looked to some key manufacturing data.

The FTSE 100 was called to open two points higher than Monday’s close at 6,956.

Meanwhile, the pound was steady after rebounding late on Monday on news that Bank of England governor Mark Carney will remain in his post until 2019, which is a year longer than his initial term.

On the data front, the UK manufacturing purchasing managers’ index is at 0930 BST. In the US, construction spending and ISM manufacturing are at 1400 GMT.

CMC Markets’ Michael Hewson said: “In September the manufacturing sector in the UK experienced a Lazarus like rebound at the end of the quarter, jumping to 55.4, having been in contraction at the beginning of the quarter. In October the expectation is slightly more modest but nonetheless we still expect to see a decent number of 54.6.”

In corporate news, underlying third-quarter profits halved at BP compared to last year but the fall was not as bad as feared.

Although down 49% on last year, underlying replacement cost profits of $933m in the three months to the end of September were well ahead of the consensus forecast of $720m, as production decreased 2%.

FTSE 250 transport operator Go-Ahead said its expectations for the full year remain unchanged, as it reported “robust” trading in the first quarter.

In a trading update for 3 July to the end of October, the group said it remains in a good financial position, with strong cash generation and a robust balance sheet.

Royal Dutch Shell’s third quarter results improved from the second, as earnings rose, however the oil giant was affected by low oil prices while the “outlook remains uncertain”.

The company's current cost of supplies earnings attributable to shareholders was $1.4bn compared with a loss of $6.1bn for the same quarter last year.

Weir Group posted its interim management statement for the third quarter to 31 October on Tuesday, with aftermarket orders stable during the period, though overall order input was down 7%.

The FTSE 250 firm said full year profits were now anticipated to be slightly lower than current market expectations, although continued strong cash generation was still expected in 2016.

It said its disposal programme was on track to deliver up to £100m by year-end, with £79m achieved by end of October.