London pre-open: Stocks to gain as investors eye PMIs

(Sharecast News) - London stocks were set to gain at the open on Tuesday as investors eyed the latest UK and US PMI readings. The FTSE 100 was called to open around 15 points higher.

On the macro front, S&P Global's UK PMI for September is due at 0930 BST, while the US PMI for September is due at 1445 BST.

The eurozone HCOB PMI will be released at 0900 BST.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Today, investors will have an eye on early PMI data for September. Encouraging eurozone numbers could cement the expectation that the European Central Bank (ECB) won't need to deliver another cut this year and help euro bulls gain ground, while weak UK numbers could confirm slower activity and fuel worries ahead of the next budget announcement - not expected to be a sweet moment for taxpayers."

In corporate news, DIY retailer Kingfisher lifted its full-year profit guidance despite weaker consumer sentiment, following strong interim trading.

Sales at the owner of B&Q and Screwfix rose by 0.8%, or by 1.9% on a like-for-like basis, to £6.8bn in the six months to 31 July, driven by both increased volumes and transactions.

Operating profits rose by 2.1% to £383m, while pre-tax profits were 4.1% higher at £338m.

The blue chip flagged a "strong" performance in the UK, with like-for-like sales up 4.4% and 3% at B&Q and Screwfix respectively.

Engineering business Smiths Group delivered strong annual results, with organic growth coming in ahead of twice-raised guidance and profits up by double digits.

Organic group revenues were up 8.9% over the 12 months to 31 July, well ahead of the most recent target of 6-8% growth, while organic operating profits improved by 13.1%.

However, the company pointed to a slight slowdown over the current financial year, guiding to organic revenue growth of 4-6%, citing ongoing macro uncertainty "with tariffs and increased geo-political risks causing market instability".

Government contractor Serco said it had appointed Michael LaRouche as chief executive of its North American division.

LaRouche was business president at Science Applications International Corporation, having previously held leadership positions at Lockheed Martin and Raytheon, Serco said in a statement.

Elsewhere, vehicle rental firm Zigup held annual guidance and said it had performed well over the first four months of the current financial year with vehicles on hire (VoH) ahead of 2024.