London pre-open: Stocks seen touch higher ahead of jobs data

London stocks were expected to open a little firmer on Wednesday as investors turned their attention to some key data releases.

The FTSE 100 was set to open 13 points higher than Tuesday’s close at 6,710.

CMC Markets’ Jasper Lawler said: “One of the catalysts for the rally in share prices since the Brexit vote has been the expectation of monetary stimulus. Those expectations were significantly dampened after the Bank of England caught markets by surprise by failing to cut rates last week. Since that decision, the FTSE 100 has been directionless.

“Nonetheless, further easing is still expected, but not just from the Bank of England and the Bank of Japan. The Reserve Banks of Australia and New Zealand signalled more stimulus could be in the pipeline in minutes released on Tuesday. And on Thursday Mario Draghi is likely to indicate the ECB is willing to “do what it takes” if Brexit interrupts the fragile European economic recovery.”

On the data front, the UK claimant count, unemployment rate and average earnings are all at 0930 BST.

In the US, MBA mortgage applications are at 1200 BST.

In corporate news, water and wastewater company Severn Trent posted a trading update for the period from 1 April to 19 July on Wednesday, as it continued to focus on enhancing its customer service, operational and financial performance.

The FTSE 100 firm said it is making good progress with its plans to deliver “targeted efficiency savings” in the second year of the AMP6 regulatory period.

“Progress continues with the Water Plus joint venture with United Utilities,” Severn Trent’s board said in a statement.

“The deal completed on 1 June following Competition and Markets Authority approval on 3 May.”

For the full-year 2016/17, the board said its results will therefore include two months of discontinued operations for non-household retail operations, and ten months of the group's 50% share of the JV.

“Elsewhere for the group, there has been no material change to current year business performance or outlook since the full-year 2015/16 results on 24 May,” the board said.

Miner BHP Billiton posted its operational review for the year to 30 June on Wednesday, confirming it exceeded full-year production guidance for petroleum, copper and metallurgical coal, and achieved record full-year production at Western Australia Iron Ore.

The FTSE 100 firm said it expects to achieve full-year cost guidance at its major assets, with unit costs forecast to decline further next year.

Underlying attributable profit in the June 2016 half-year is expected to include additional charges of up to $175m, the company warned.

First quarter sales rose 6% at speciality chemicals Johnson Matthey thanks to strong sales growth in Emission Control Technologies and further progress in new businesses.

Underlying profit before tax for the full year was said to be "broadly in line" with last year at constant currency rates.