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

London stocks were set for a marginally firmer open on Wednesday as investors eyed the release of some key services data.

The FTSE 100 was expected to open four points higher at 7,361.

Markit's services purchasing managers' index is at 0930 BST, while in the US, the latest FOMC minutes are due at 1900 BST.

London Capital Group analyst Ipek Ozkardeskaya said consensus for the June services PMI is slightly softer at 53.5 versus 53.8 printed a month earlier. "Although the PMI indicator stands at levels prior to the Brexit referendum, the uncertainties regarding the UK’s future relationship with its biggest business partner may enhance the worries beyond the data point itself. Therefore the downside risks prevail in the pound market. A soft read could help the Bank of England doves gain back some territory from the hawks and push back rate hike expectations on weak economic fundamentals."

Investors will be digesting services data out of China, as the latest Caixin survey showed the services PMI came in at 51.6 in June, down from 52.8 in May but above the 50 mark that separates contraction from expansion.

In UK corporate news, housebuilder Persimmon put together an excellent foundation to its financial year, reporting resilient consumer confidence and strong momentum moving into the second half.

The FTSE 100 group expanded revenues 12% to £1.66bn as the volume of new homes sold grew 8% to 7,794 and it was able to hoist average selling prices 3.5% to £213,000.

Retirement housebuilder McCarthy & Stone updated the market on its performance for the period from 1 March to 4 July, reporting “upward momentum” in average selling prices and margins since 1 March.

The FTSE 250 firm said average selling prices exceeded £280k per unit during the period, compared to £265k a year ago, and the group's total forward order book increased by £241m since 1 March, compared to £219m growth a year ago.

Ocado, the online grocery specialist, increased orders volumes and revenues in the first half of the year but saw profits shrink due to investments in its Andover 'customer fulfilment centre'.

Boss Tim Steiner hailed the easing of price deflation in the market, which he said would help the FTSE 250 group continue the profitable growth of the retail business.