London pre-open: Stocks seen higher ahead of services PMI

London stocks were expected to open higher on Monday following an upbeat session in Asia, as investors eye the release of UK services data.

The FTSE 100 was set to open 24 points firmer than Friday’s close at 6,918.

CMC Markets’ Jasper Lawler said: “A theme of lower rates for long is helping setup European markets for a higher open on Monday. Chief Japanese central banker Kuroda’s suggestion overnight that there is “ample room” for further rate cuts has added to the sense that central banks will continue to backstop asset prices. The comments come after US unemployment figures released on Friday meant the Federal Reserve will probably refrain from raising rates at its September meeting.

"The G20 doesn’t look like it will throw up any stingers for global markets. Political leaders are focusing on trying to achieve “inclusive” globalisation in order to fend-off a popular uprising against a global system that has seen wealth inequality widen.”

On the data front, UK services PMI is at 0930 BST. US markets will be closed for the Labour Day holiday.

In corporate news, tests of a GlaxoSmithKline respiratory drug have found a statistically significant reduction in the rate of attacks suffered by chronic obstructive pulmonary disease (COPD) patients compared to when they receive the standard treatment.

The pioneering Salford Lung Study into the effectiveness and safety of GSK's drug also showed a similar improvement against patients who were taking a medicine in the same class as Relvar Ellipta.

LondonMetric Property announced on Monday that it has sold a retail park in Warrington for £6.6m, at a net initial yield of 5.4%, and acquired an 89,000 sq ft distribution warehouse in Hemel Hempstead for £8.3m, at a NIY 6.4%.

The firm said the Fordton retail park in Warrington comprises 20,200 sq ft and is let to Aldi, Greggs, Betfred, Barnardo's and Costa.

In Hemel Hempstead, the recently refurbished distribution warehouse is let to ITAB, the shop concept company, at a rent of £6.24 per square foot and with an unexpired lease term of 8.3 years.

Construction and maintenance company Carillion extended its partnership with utility firm Centrica for a further five years to deliver facilities management and project services, in a deal worth £90m.

The service is to start in December and builds on the company’s existing decade-long, management service for Centrica’s British Gas business and will now include total facilities management.