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

Stocks in London were set for a slightly higher open on Tuesday, tracking gains in the US and Asia amid strong oil prices.

The FTSE 100 was called to open 37 points higher than Monday’s close at 6,815.

CMC Markets said: “Energy commodities have attracted strong new interest to start the trading week. WTI crude oil rallied 4.5% on indications from Iran, Iraq and Russia that they still want to hammer out a production freeze/cut deal for next week’s November 30 big OPEC meeting.

“At the same time, the potential for higher seasonal demand has encouraged traders to return to energy markets. A warm fall to date following a warm winter last year has quickly faded into memory as plunging temperatures and snow falling in the Midwest and Eastern consuming regions has signalled an early onset of winter sparking big seasonal rallies in natural gas and heating oil.”

On the data front, UK public spending and net borrowing figures are at 0930 GMT, while US existing home sales are at 1500 GMT.

In corporate news, international distribution and outsourcing group Bunzl said it had entered into agreements to buy two businesses in France and Denmark for an undisclosed sum.

The company said it had agreed to buy Prorisk and GM Equipement, which are based near Lyon and in Vannes respectively and mainly engaged in the sale of a variety of personal protection equipment and first aid related products to both end users and distributors throughout France.

Hikma Pharmaceuticals has signed a development and licensing agreement with Vectura for its generic salmeterol product (VR730) for the treatment of asthma and chronic obstructive pulmonary disease.

Under the terms of the agreement – which has been signed by Hikma’s US affiliate, West-Ward Pharmaceuticals Corp – Hikma will be responsible for the clinical development, manufacture and commercialisation of the product.

Quality assurance provider Intertek reported a jump in revenues and said it remains on track to deliver full year growth and cash generation.

For the 10 months ended 31 October, revenue grew 10% at constant rates to £2.09bn, or 18% at actual rates, compared to the same period last year, and the company said it is on track to “deliver robust revenue growth, with strong operational discipline, stable machine and good cash generation” for 2016.