London pre-open: Stocks seen up on positive Asian cues

London stocks were set to rise at the open on Monday following an upbeat session in Asia, as investors eye the release of manufacturing data.

The FTSE 100 was called to open 32 points higher at 7,563.

CMC Markets analyst Michael Hewson said: "Today’s manufacturing PMIs are set to confirm the weak nature of this part of the global economy, with Spain, Italy, France, and Germany PMIs all forecast to slip back to 47.9, 45.3, 45.5, and 41 respectively. UK and US are also expected to remain soft at 46.2 and 46.3 respectively, while the US ISM manufacturing survey, is also forecast to remain below 50, at 47.2, with prices paid at 44.

"Markets are already pricing in further rate hikes this month from the Federal Reserve, as well as the ECB, followed by the Bank of England in August, however the bigger question is what comes after these. One suspects we may not see many more after these hikes, however for now markets seem reluctant to come to that conclusion.

"That said as we look towards H2 the bigger question is having seen such a positive H1, is there anything left in the tank, to build on those gains over the course of the rest of the year?

"A decent Asia session looks set to translate into a positive start for European markets although current unrest in France is likely to prompt questions about economic activity there in the coming weeks."

In corporate news, IG Group said chief executive June Felix is taking a short period of medical leave from the business.

Charlie Rozes, chief financial officer, will be taking over her day-to-day responsibilities as acting CEO, in addition to his current role, the derivatives trader added.

Elsewhere, vending machine company ME Group said it was buying Fujifilm’s automated-photobooth business in Japan for up to £5.5m.

Formerly Photo-Me International, the company said the deal amount could reduce subject to an adjustment mechanism and expected to fund the transaction via a new local loan facility on "commercially advantageous terms" or existing cash resources if that was not secured.

Chief executive Serge Crasnianski said the purchase would be a "significant" expansion of its current installed estate of approximately 10,500 photobooths in the region.

"Demand for Photo ID in Japan remains robust, driven by the Japanese government's social security and taxation photo ID card scheme,” he added.