London pre-open: Stocks seen up as investors mull China data

London stocks were set to rise at the open on Monday as investors mulled the latest data out of China.

The FTSE 100 was called to open 20 points higher at 7,563.

CMC Markets analyst Michael Hewson said: "Today’s focus has been on this morning’s Q4 China GDP numbers which came in at an annualised 4%, which when you consider some of the estimates of 12 months ago is disappointing.

"As 2021 progressed it became ever more apparent that some of the forecasts may have been too optimistic, as a combination of port disruptions due to covid restrictions, supply chain issues, as well as surging power costs and enforced shutdowns of the Chinese economy, hampered economic activity in the second half of the year. On a quarterly basis the economy rebounded strongly from the 0.2% we saw in Q3, expanding by 1.6%

"Today’s market open looks set to see European stocks open higher, with the main focus this week, away from US earnings, set to be on the latest wages, unemployment and inflation numbers from the UK economy, and the Bank of Japan tomorrow."

In corporate news, Hikma Pharmaceuticals said it had agreed to buy the Canadian assets of Teligent for $45.75m after the US firm filed for Chapter 11 bankruptcy last year.

The transaction is expected to be completed before the end of the first quarter and marks Hikma's expansion into Canada and includes a portfolio of 25 sterile injectable products, three in-licenced ophthalmic products and a pipeline of seven additional products, four of which are approved by Health Canada.

Property investor and developer Capital & Counties said that an independent valuation of its Covent Garden assets had revealed that the property's value had increased by 4.6% to £1.7bn in the second half of the year.

Capital & Counties stated the second half movement was primarily driven by a 3% like-for-like increase in estimated rental value, reflecting positive leasing activity and high occupancy levels across the estate, as well as a reduction in the equivalent yield of five basis points to 3.88%. The valuer's assumption on loss of near-term income was also reduced from £11.0m to nil.