London pre-open: Stocks seen up on better-than-expected China manufacturing data

London stocks were set to rise at the open on Friday, taking their cue from a positive Asian session following the release of encouraging Chinese manufacturing figures.

The FTSE 100 was called to open 40 points higher at 7,114.

London Capital Group analyst Jasper Lawler said: "Asian markets moved higher overnight, and Europe is pointing to a higher open after the latest data from China beat expectations."

The Caixin manufacturing gauge rose to a three-month high of 49.9 in February from 48.3 in January, coming in above expectations for a reading of 48.5, but still in contraction territory.

"Thanks to domestic demand improving significantly and foreign demand not deteriorating as sharply as expected, investors are reacting well to the reading," said Lawler. "The improved data from China, combined with the better than forecast US GDP are soothing market concerns over the global growth outlook."

On the UK data front, Markit’s manufacturing PMI, net lending, consumer credit and mortgage approvals are all due at 0930 GMT.

In corporate news, convalescent media colossus WPP saw revenues slip less than feared last year but said 2019 will be challenging after a spate of client losses. Revenue of £15.6bn for 2018 was down 2.6% year-on-year or 0.4% lower on a like-for-like basis, with a 0.1% decline in the fourth quarter.

Dutch authorities have told Royal Dutch Shell that they are close to prosecuting the company over a case linked to alleged bribery in Nigeria.

Nearing the conclusion of their investigation, the Dutch Public Prosecutor’s Office said it is preparing to prosecute Shell for criminal charges directly or indirectly related to the 2011 settlement of prospecting license 245 in Nigeria, which is held jointly by Shell Nigeria and the exploration arm of Nigeria's Agip.

Rightmove posted an 11% rise in 2018 pre-tax profit, with growth in revenue and traffic, as the company said the UK online property advertising market is set to continue growing.

Pre-tax profit increased to £198.3m from £178.2m in 2017, on revenue of £267.8m, up 10%. Meanwhile, operating profit was up 11% to £198.6m and the final dividend was boosted 11% to 4p a share.

William Hill reported a 2% improvement in its full-year group net revenue to £1,621.3m, as its adjusted operating profit from existing operations slid 3% to £266.8m, which was in line with expectations.

The company said that for the year ended 26 December, its operating cash flow before movements in working capital was up 9% to £275.0m. It confirmed a full-year dividend of 12.0p per share, which was in line with its policy to pay out around 50% of underlying earnings, based on adjusted earnings per share before the costs of its US expansion costs 2018.