London pre-open: Stocks to open lower on US and Chinese data

LONDON (ShareCast) - (ShareCast News) - City sources predict the FTSE 100 will open six points lower than Friday's close of 6,696.28. A weak close in the US on poor wage growth and consumer sentiment will put downward pressure on the markets, London Capital Group night dealer Jonathan Sudaria said.

"European equities are set to slip on weak US and Chinese data. It's a bad start for China already what with two disappointing Manufacturing PMI figures over the weekend, although it really shouldn't have been a surprise," Sudaria said.

A number of other manufacturing PMI readings will be released this morning with Spain expected to ease slightly to 54.2 and Italy tipped to edge back up to 54.6.

Stocks to watch HSBC said first half profits were up by 10%, beating analysis' expectations. The banks said earnings were driven by a strong performance in Asia. The bank said adjusted revenue was up 4% to $30,772m, driven by revenue growth in client-facing global banking and markets, principally in equities and foreign exchange.

Northgate , a specialist in light commercial vehicle hire, announced a refinancing of the company's debt facilities. Northagate has issued a €100m, 2.38% seven-year debt private placement to an institutional investor. As a result, the group's principal bank facility has been reduced to £424m from £499m.

Intertek posted a rise in first-half pre-tax profit on the back of improved revenue momentum, margin progression and strong cash generation. Pre (Shanghai: 600048.SS - news) -tax profit was up 16.1% at 139.1m from £119.8m last year, while revenue grew 3.5% to £1.06bn from £1.02bn.

In the press UK Chancellor George Osborne is aiming to eclipse the Thatcherite privatisation boom of the 1980s and 1990s as he oversees the biggest-ever sale of publicly-owned corporate and financial assets in one year. The chancellor hopes to dispose of £32bn-worth of assets this financial year, smashing the record set in 1991 when the Tory government raised £11.8bn - £20.5bn in today's money - through the sale of BT , National Power and regional electricity companies. - Financial Times Britain's mortgage borrowers will be warned this week to brace themselves for higher interest rates on what City of London (LSE: CIN.L - news) traders have dubbed "Super Thursday". At least two, perhaps three, of the nine members of the Bank of England's interest rate-setting committee are expected to cast their votes for a rate rise. Confirmed hawks Martin Weale and Ian McCafferty, who voted for rate rises throughout the second half of 2014 before changing their minds as inflation plunged to zero earlier this year, have signalled they could soon be ready to see borrowing costs rise. - Guardian ValueAct, the US hedge fund that has become Rolls-Royce's largest shareholder, is urging the company to accelerate cost cuts in its core aerospace business, according to people familiar with the fund's thinking. The San-Francisco based activist fund is also likely to encourage an eventual sale of the company's non-aerospace division when the board conducts a strategic review. - Financial Times