London pre-open: Stocks seen weaker on China data

London stocks are expected to open lower on Tuesday, taking their cue from a negative finish on Wall Street and some weak data in China.

The FTSE 100 is seen starting down 50 points at 6,047.

The Caixin manufacturing PMI unexpectedly dropped to 48 in February from 48.4 the previous month, according to Markit. This was the weakest reading in five months and missed analysts’ expectations for it to remain unchanged.

Meanwhile, the official manufacturing PMI from the Chinese National Bureau of Statistics printed at 49.0 for February, weaker than expectations for a reading of 49.4.

On the data front, UK PMI manufacturing is at 0930 GMT. In the US, Markit manufacturing is at 1445 GMT, while construction spending and ISM manufacturing are at 1500 GMT.

Glencore's numbers were down sizeably in its preliminary 2015 results on Tuesday, with adjusted EBITDA falling 32% to $8.7bn (£6.25bn), with the company blaming substantially weaker commodity prices, partially offset by cost efficiencies and favourable currency conditions in producer countries.

Adjusted EBIT slipped 68% to $2.17bn, and net income attributable to equity holders was down 69% to $1.34bn, pre-significant items.

Basic earnings per share, pre-significant items, dropped 69% to 10c.

The company described its results as robust, however, pointing to its total assets of $128.5bn, down 16%, and net debt of $25.89bn, down 15%.

Along with confirmation of rumours that it would sell its African business, Barclays announced annual pre-tax profits fell 2% to £5.4bn and halved its dividend. Barclays said it would sell 62% of Barclays Africa, which along with the dividend reduction will help boost its capital buffers at least 1% over the next two-three years.

Rio Tinto has sold its 40% interest in the Bengalla coal joint venture in Australia for US$616.7m (£443m). The sale was enabled after Rio took its stake in Coal & Allied from 80% to 100% on 3 February as part of the restructuring of the coal group, which means it will receive the entire consideration from its interest in the Bengalla JV and from its recent sale of the Mount Pleasant project for $224m plus royalties.