London pre-open: Stocks seen higher as MPs set to vote on Article 50 timetable
Stocks in London were set to open higher on Wednesday following positive US and Asian cues, as MPs prepare to vote on the government’s plan to trigger Article 50 by the end of March next year.
The FTSE 100 was called to open 31 points higher than Tuesday’s close at 6,810.
On the data front, UK manufacturing production and industrial production are at 0930 GMT.
CMC Markets’ Michael Hewson said: “In the UK the latest Brexit arguments continue to be heard in the Supreme Court while we are also expected to get a vote today in the House of Commons asking MP’s to respect the will of the people and calling for Article 50 to be triggered by the end of March.
“If Parliament ratifies the motion then Parliament will have had its say, however the vote does have its risks given that any ‘remainers’ could conceivably vote in their own interests against the motion, and really put the cat amongst the pigeons so to speak if it fails to pass.”
In corporate news, train and bus operator Stagecoach hiked its interim dividend to show its confidence in the future and keep investors chipper as profits and earnings fell in the face of what it said was a continuing "challenging and uncertain" political and economic environment.
In the half-year ended 29 October revenue of £2.0bn was up 1.6% but operating profit fell 19% to £117m, pre-tax profits by 17% to £100.4m and adjusted earnings per share by 15% to 14.4p.
Carillion provided an update on trading in 2016 on Wednesday, ahead of announcing its preliminary results on 1 March.
The FTSE 250 firm said performance met expectations, and it expected strong growth in total revenue and increased operating profit.
New orders plus probable orders in 2016 were expected to reach £4.5bn, with total orders plus probable orders of approximately £16bn by the year end, down from £17.4bn at the same time last year.
Business intelligence group Informa has announced the issue of $500m of new US private placement notes which will be used to pay down the majority of the $675m previously arranged and drawn down acquisition facility.
The notes have been issued in three tranches with a weighted average term of 9.25 years and at a weighted average coupon of 3.6%.
Accounting software company Sage confirmed that it is “evaluating potential strategic options” for the payments business in North America, including a sale, but stressed that there could be “no certainty” that the evaluation would lead to any action.
In November, the FTSE 100 company said in its final results for the year ended 30 September that there were “challenges” in the payments business as it had only 4% revenue growth, compared to the previous year.