London pre-open: Stocks to edge up ahead of services data

(Sharecast News) - London stocks were set to edge up at the open on Wednesday as investors eyed the latest reading on the UK services sector. The FTSE 100 was called to open six points higher at 7,640.

CMC Markets analyst Michael Hewson said: "Most of the economic data seen this week has pointed to the prospect of a slowdown playing out in the manufacturing sector, which in turn has served to act as a drag on equity markets, despite a decline in yields, as markets look to central banks signalling a pause and possible reversal on recent rate hikes.

"Yesterday's mixed session for European markets saw both the DAX and FTSE 100 slide back from their intraday highs, after weak US data prompted concerns that the US economy was starting to show signs of weakness."

On the macro front, the S&P Global/CIPS UK services PMI for March is due at 0930 BST.

In corporate news, RS Group said it expected annual adjusted operating profit to be slightly ahead of estimates after a 1% rise in fourth-quarter like-for-like revenue despite weak electronics sales.

The electronics product distributor, formerly known as Electrocomponents, added that full-year revenue would be in line with consensus and that it was well positioned to face the more difficult market environment.

Consensus estimates for the year to March are for revenue of £2.98bn in a range of £2.86 - 3.07bn, adjusted operating profit of £382m within a range of £375 - 386.2m and adjusted pre-tax profit of £373m in a range of £368.5 - 376.8m.

The company said its industrial product ranges, which make up 77% of group revenue, grew like-for-like sales by 10% in the final quarter, while electronic products fell 14%.

Ladbrokes owner Entain said it has agreed to buy sports media business 365scores for up to $160m (£128m).

It said 365scores is one of the world's leading scores and sports media companies, providing scores and sports information, editorial and social content, as well as sports-focused free-to-play games.

The business has a global audience of more than 15m active users and is ranked amongst the top five scores apps worldwide.

"The combination of 365scores' deep expertise in data-driven sports media content alongside Entain's global scale and market leading platform capabilities will provide customers with a broader offering of interactive content and experiences," Entain said.

"The acquisition unlocks further growth opportunities and supports our global strategic ambitions."