London stocks were set to nudge just a touch higher on Wednesday following a mixed session in Asia and a muted one on Wall Street.
The FTSE 100 was called to open around seven points higher at 7,095 .
Oanda analyst Jeffrey Halley said: “China’s official manufacturing and non-manufacturing PMIs were underwhelming, albeit still in expansionary territory. Manufacturing PMI just missed at 50.90, while non-manufacturing PMI came in at 53.50, well below expectations.
“Stories of Chinese consumers saving instead of spending have been circulating for a while now, and it seems to be showing up in the data. Logistics and chips are making their presence felt in manufacturing. Tomorrows Caixin manufacturing and services PMIs could have a more significant impact now if they print on the soft side.”
In corporate news, Dixons Carphone reinstated its dividend as it swung back to profit on the back of a massive boost in online sales of electrical goods during Covid lockdowns.
The company reported pre-tax profits of £33m compared to a £140m loss a year earlier. Group revenue rose 2% to £10.3bn, offset by Carphone Warehouse closures in March, but online electrical sales more than doubled to £4.7bn. A dividend of 3p a share was declared.
Elsewhere, opioid addiction treatment maker Indivior lifted its 2021 guidance following a better-than-expected business performance through the first half the year.
It now expects net revenue and adjusted pre-tax income to be “significantly” above its original guidance.
