London pre-open: Stocks seen up ahead of manufacturing, industrial production figures

London stocks were expected to open higher on Wednesday, taking their cue from a positive session on Wall Street as investors eye some key data releases.

The FTSE 100 was set to open 11 points firmer than Tuesday’s close at 6,837.

UK manufacturing and industrial production figures are due at 0930 BST. Market participants will also be turning their attention to Bank of England Governor Mark Carney’s testimony to the Treasury Select Committee at 1000 BST on the 4 August Inflation Report.

CMC Markets’ Jasper Lawler said: “UK industrial production is forecast to dip 0.2% in July with a 0.5% fall in manufacturing production. It was July that saw a sharp slide in the manufacturing PMI. It’s entirely feasible that the real economy never matched the nerves felt by purchasing managers and that today’s figures see a monthly rise.

“BOE Mark Carney may be hoping for disappointing industrial data today to help justify the Bank of England’s swift, but probably unnecessary decision to ease monetary policy in his hearing with parliament today.”

In corporate news, Sports Direct said it expects earnings to fall 21% this year but added that, contrary to much media speculation, founder Mike Ashley was not planning to take the company private any time soon.

The FTSE 250 retailer, which also said that it had urged chairman Keith Hellawell to continue in his role after he offered to step down over the weekend, said it expected earnings before interest, tax, depreciation and amortisation (EBITDA) would be around £300m with sales increasing at least 9%.

Housebuilder and property developer Barratt Developments posted its annual results for the year to 30 June on Wednesday, with total completions rising 5.3% to 17,319.

The FTSE 100 firm reported revenue of £4.24bn, up 12.7%, with profit from operations growing 15.9% to £668.4m.

Its operating margin improved by 0.5 percentage points to 15.8%, with a profit before tax up 20.7% to £682.3m and basic earnings per share rising 21.1% over the prior year to 55.1p.

Industrial equipment rental company Ashtead Group’s revenue increased as it benefited from weak sterling in the first quarter, while it expects full year results to be ahead of expectations.

For the first quarter ended 31 July, revenue increased by 14% to £707m, compared to the same period last year, due to growth in the Sunbelt and A-Plant businesses.