London pre-open: Stocks seen up on upbeat US cues, China data

Stocks in London were set to open a touch higher on Wednesday, taking their cue from a positive close in the US and following the release of decent Chinese data.

The FTSE 100 was called to open seven points firmer than Tuesday’s close at 7,007.

CMC Markets’ Michael Hewson said: “The latest Chinese Q3 GDP numbers appear to show the Chinese economy growing at a steady rate of 6.7%, unchanged from the previous two quarters, a remarkably consistent performance from such a large economy, but in line with expectations.”

The 6.7% was in line with the two previous quarters.

Elsewhere, figures showed retail sales in China were up 10.7%, while urban investment grew 8.2%. However, industrial production fell short of expectations, up just 6.1%.

On the macroeconomic front, UK average earnings, the unemployment rate and claimant count are due at 0930 BST. In the US, housing starts are at 1330 BST.

In corporate news, health, hygiene and home products manufacturer Reckitt Benckiser grew in the third quarter but was affected by its ongoing legal issues in South Korea, low demand in Russia and weakness in the Scholl business.

In a trading statement, the company reported 2% like-for-like growth in the third quarter which was impacted by expected headwinds, with total growth increasing 17% due positive foreign exchange rates.

One of the first companies in the construction sector to provide an update on the third quarter, Travis Perkins reported market conditions have worsened and in light of the uncertainty it has decided to close more than 30 branches and launch a cost-cutting programme.

The FTSE 100 group said that its consumer, contracts and general merchanting businesses had outperformed the market, however, with total sales growing 3.4% in the three-months to the end of September and like-for-like growth of 2.0%.

BHP Billiton posted its operational review for the three months to 30 September on Wednesday, with all of its production and unit cost guidance remaining unchanged for the 2017 financial year - though guidance for the Olympic Dam was under review after a state-wide power outage in South Australia.

The firm reported a 15% drop year-on-year for petroleum production in the quarter, to 55 Mboe, with copper down 6% to 355 kt and iron ore flat at 58 Mt.