London pre-open: Stocks seen higher on positive Asian cues

London stocks are expected to open a little higher on Monday, following a positive session in Asia and amid higher oil prices.

The FTSE 100 is seen starting 32 points higher than Friday’s close at 5,982.

On the data front, UK CBI industrial trends data for February is due at 1100 GMT. In the US, the Markit manufacturing PMI is at 1445 GMT.

“While the news that Boris Johnson is backing a vote for “Brexit” is undoubtedly a coup for the so called “outers” it really shouldn’t really be that much of a surprise given his reputation as a bit of maverick, and the fact that the deal reached by Prime Minister David Cameron contained so few significant reforms,” said Michael Hewson, chief market analyst at CMC Markets.

“There is also the small matter that the vote remains four months away, and while the wait is likely to create some uncertainty about the UK economy, it is one of many factors troubling investors right now, including China’s economy, the effect on emerging markets, as well as the current negative interest rate policy of the ECB and Bank of Japan, not to mention the problems surrounding Europe’s banking system.”

HSBC 2015 profit nearly flat

HSBC has posted relatively flat profit before tax after being hit by rising operating expenses.

The FTSE 100 bank reported profit before tax of $18.9bn (£13.3bn), up from $18.7bn in 2014.

However adjusted profit before tax dropped from $22.0bn to $20.4bn.

“We enter 2016 with a clear strategy and with a plan for its implementation already well under way,” said Chairman Douglas Flint.

“Our diversified business model and balance sheet strength form the foundation for our future progress, and position HSBC well to deal with today's challenging economic and financial conditions.”

Associated British Foods was banking on a decline in the pound on Monday, as it prepared the market for a dip in earnings in the current first half.

The company's board said it expected some progress in adjusted operating profit for the group in the current period, though adjusted earnings per share were expected to be slightly lower.

ABF said the underlying trading outlook for the full year remained unchanged, with the weakening of sterling in recent weeks - particularly against the euro - easing the effect of currency translation on the year's results, to £10mfrom £25m.

"We now expect only a marginal decline in adjusted earnings per share for the group, for the full year," its board said in a statement.

Bovis Homes reported a 20% rise in full year pre-tax profit and hiked its dividend as revenue grew and the housebuilder sounded an upbeat note on 2016.

For the year ended 31 December, pre-tax profit came in at £160.1m from 133.5m in 2014, on revenue of £946.5m, up 17%.

Chief executive David Ritchie said: “We have delivered record profit driven by another year of record volume. We have invested well during 2015 in new consented land and achieved a strong level of conversion from our strategic land bank.

“While it has been a time of operational challenge with fast moving market conditions, we are delivering our strategic growth plan and have evolved our management and business structure at the start of 2016 to support further growth.”