London pre-open: Stocks seen up ahead of UK manufacturing data

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

The FTSE 100 was called to open 22 points higher at 7,259.

CMC Markets analyst Michael Hewson said: "As we look ahead to today’s market open, we can expect to see a positive start to the week, after the Nikkei 225 got off to a flier after a decisive win for the ruling Liberal Democrats, who retained their majority in the weekend elections, and as we look to the latest economic announcements in the form of manufacturing PMI numbers from the UK and US which are expected to remain fairly resilient.

"The UK numbers are expected to be confirmed at 57.7, while the latest US ISM manufacturing numbers, which pushed back above 60 in September, look set to stay there in the October numbers, coming in at 60.4, however prices paid, which have come down in recent weeks could edge up again to 82.5, from 81.2."

The manufacturing PMI for October is due at 0930 GMT.

In corporate news, Howden Joinery said it expected annual profits to be at the top end of current analyst forecasts of £298m - £360m as the surge in DIY demand continued into the second half.

The company said revenue rose by a fifth from June 13 to the end of October driven again from pent-up demand from consumers working from home during the Covid pandemic.

Compared with pre-crisis 2019 sales rose 35.7%.

"We remain watchful of the uncertainties ahead, including the economic outlook and the potential impacts from ongoing disruption to global supply chains and cost inflation upon our business," the company said.