London pre-open: Stocks seen higher; Next cuts FY profit guidance
Stocks in London were set to open a littler firmer on Wednesday, taking their cue from a positive close on Wall Street and a mostly upbeat Asian session.
The FTSE 100 was called to open 12 points higher than Tuesday’s close at 7,189.
On Tuesday, the index kicked off the new year with a fresh record high, buoyed by encouraging manufacturing data out of China. The FTSE broke through 7,200 for the first time intraday, reaching a record high of 7,205.21 and ending the day at 7,177.89.
On the data front, UK construction PMI and mortgage approvals are at 0930 GMT. In the US, the ADP employment report is at 1315 GMT, while the FOMC minutes are at 1900 GMT.
In corporate news, retailer Next has lowered its profit guidance for the full year and warned of another challenging year ahead after sales over the key Christmas period slipped 0.4% on last year.
Shop sales from the start of November until Christmas Eve declined 3.5% and directory sales rose 5.1%, meaning for the year to 24 December group sales have fallen 1.1%.
Management's central profit guidance for the full year has been cut to £792m from the previous £785-825m range where the central point was £805m.
Carillion announced that one of its joint ventures, Al Futtaim Carillion, had been awarded a £160m contract for phase 1A6 of the One Central development by the Dubai World Trade Centre.
The FTSE 250 firm said the latest phase of the One Central development has a built-up area of 182,500 square metres and comprises two Grade A office buildings of 12 and eight storeys.
It said the contract, worth approximately £160m, will begin in January 2017 and is scheduled for full completion at the end of 2018.
Medical products company ConvaTec has bought Dutch ostomy appliances manufacturer, EuroTec Beheer for €25m in order to strengthen its position in the France and Benelux markets.
The acquisition of EuroTec, which manufactures and distributes one and two-piece ostomy systems in the Netherlands and Belgium and through distributor partners in other markets, also includes its production facilities in Rosendaal.