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

London stocks were set for a firmer open on Monday, taking their cue from a positive session in Asia following last week's better-than-expected non-farm payrolls report.

The FTSE 100 was expected to open 30 points higher at 7,381.

CMC Markets analyst David Madden said: "In Europe, despite the expectation of a positive open this morning after a positive Asia session, the German DAX has barely recovered from its eight week lows seen at the end of June, as higher yields and a higher euro offset optimism about a stronger European recovery, while UK markets have suffered on the back of weaker than expected economic data, for the month of May, as well as doubts about how recent splits on the Bank of England’s monetary policy will play out in the context of future policy announcements, and a slightly more hawkish tone.

"This apparent change of tack is hard to square with last week’s disappointing UK data, however the uncertainty created by the snap election in June may also have had a part to play in weakness here. This week’s data is likely to paint a more accurate picture of how the UK economy is performing with the latest wages and unemployment data, due out on Wednesday."

Data released on Friday showed payrolls rose by 222,000 in June compared to an upwardly-revised 152,000 gain May, comfortably beating expectations for a 177,000 increase.

Investors will also be digesting the latest Chinese inflation data released by the National Bureau of Statistics, which showed consumer prices rose an annual 1.5% in June, unchanged from May but below expectations of 1.6%.

Meanwhile, leaders of the G-20 group of countries met in Hamburg over the weekend to discuss issues such as trade, climate change and defence.

In corporate news, Carillion's chief executive has resigned as the company suspended its 2017 dividends and promised to carry out a strategic review as it warned first-half profits would be lower and debt higher than expected.

Due to cash flows dwindling as construction contracts dry up, first-half average net borrowing is now expected to be more than £100m higher than last year at £695m, with the board deciding to sell off businesses in non-core markets and geographies to raise up to £125m in the next 12 months, alongside trimming further costs to be identified in the strategic and operational review and making a saving of around £80m by suspending the dividend.

Centamin posted its preliminary production results for the quarter ended 30 June from its Sukari Gold Mine in Egypt, with total gold production for the quarter of 124,641 ounces.

The FTSE 250 firm said that was 14% increase on the previous quarter, although 11% lower than the second quarter of 2016.

It maintained its 2017 production guidance of 540,000 ounces.