London pre-open: Stocks seen slightly higher on strong US cues

London stocks were set to open higher on Friday following a positive session in the US and amid firmer oil prices, which helped to offset disappointing Chinese data.

The FTSE 100 was expected to open 10 points higher than Thursday’s close at 6,925.

On the data front, UK construction output is at 0930 BST. In the US, eyes will be on retail sales at 1330 BST and University of Michigan consumer sentiment and business inventories at 1500 BST.

CMC Markets’ Michael Hewson said: “With the pound continuing to come under pressure today’s construction output numbers for June aren’t likely to rip up any trees or assuage concerns about a slowdown in the construction sector at the end of Q2. Having seen a decline of 2.1% in May, the June numbers aren’t expected to be that much better with a decline of 1.9% expected.”

Data out earlier on Chinese industrial output and retail sales for July came in below expectations.

In corporate news, pub and restaurant chain operator The Restaurant Group announced on Friday that after 15 years with the company, and two years as CEO, Danny Breithaupt will step down from the board and leave the company with immediate effect.

The FTSE 250 firm’s board said it has completed the initial phase of its operating strategy review, and has decided that a new leader is needed to implement the initial actions and then prioritise the next phase of the review. It also announced the appointment of Andy McCue as CEO, who will start with the company and join the board on 19 September.

McCue was most recently CEO at Paddy Power, where he embedded a new growth strategy which delivered record revenues and profits, as well as playing a central role in the merger with Betfair.

Movie theatre operator Cineworld Group confirmed on Friday that it has completed the acquisition of five cinemas from Cinema Holdings Limited, the holding company of Empire Cinema.

The FTSE 250 company had initially flagged the acquisition on 28 July, with the deal being worth a total of £94m.

Cineworld said the acquisitions included the Empire Leicester Square in London’s West End, an 18-screen multiplex in Basildon, a 17 screen multiplex in Hemel Hempstead, a 16 screen multiplex in Poole, and a smaller four screen cinema in the London borough of Bromley. The four larger cinemas feature IMAX screens, Cineworld reported.