London pre-open: Stocks seen up ahead of PMIs, ADP report

London stocks were set to rise at the open on Wednesday following a positive Asian session, as investors eye the latest reading on the UK manufacturing sector.

The FTSE 100 was called to open 35 points higher at 7,155.

On the macro front, Markit’s manufacturing PMI for August is at 0930 BST. Investors will also be looking to the release of the US ADP report later in the day.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Activity in DAX and FTSE futures hint at a positive start in Europe, as US index futures are in the green ahead of the ADP data release.

"The US is expected to have added some 613K private jobs in August. That’s more than the 330K added a month earlier. But remember, we had a big miss on the ADP front last month, and that didn’t prevent the NFP from printing a surprise strong figure near a million job additions. Therefore, the data will be taken with a pinch of salt. Still, a softer than expected figure could encourage some more profit taking across the US equities, while a good figure could send the indices to record highs, yet again.

"And in all cases, the bulls will probably read what they want to read and hear what they want to hear in data. And even if it’s not the case, they will probably rapidly get over any unpleasant news to carry the rally higher, because a misstep could have dramatic consequences."

In corporate news, WH Smith lifted full-year guidance but warned that 2022 profits were expected to be at the lower end of expectations as the travel sector’s path of recovery from the Covid pandemic remained uncertain.

The newsagent, which operates across airports, train stations and the high street, said group sales in the eight weeks to August 28 were 78% of 2019 levels before the pandemic struck. Total second half sales were at 65% of those from two years ago.