London pre-open: Stocks seen higher ahead of services PMI

(Sharecast News) - London stocks were set to rise at the open on Monday as investors eyed the latest reading on the UK services sector. The FTSE 100 was called to open 11 points higher at 7,626.

On the macro front, the S&P Global/CIPS services PMI for January is due at 0930 GMT.

Investors were also mulling the latest services data out of China.

The Caixin services PMI fell 0.2 points to 52.7 in January, missing expectations for a jump to 53.0. A reading above 50.0 indicates expansion, while a reading below signals contraction.

Pantheon Macroeconomics said that despite the fall in the headline, the PMI still signals healthy expansion in services activity.

"In fact, the Caixin measure has remained in expansionary mode for the last 13 months," said Kelvin Lam, senior China+ economist. "By contrast, January NBS services PMI rose to above 50 for the first time since November, indicating an acceleration in activity."

In UK corporate news, telecoms giant Vodafone held full-year guidance as it reported a fall in third-quarter service revenues.

The company said service revenues fell 1.4% to €9.3bn on a reported basis. Vodafone still expects adjusted core earnings of around €13.3bn and adjusted free cash flow of €3.3bn.

Spreadbetting and CFD trading group CMC Markets is to cut 200 jobs following a cost-cutting programme expected to save £21m.

The headcount reduction, which represents 17% of the total global workforce, will see the company merge support functions across multiple business lines, streamlining reporting lines and automating processes.

The move will result in a one-off cost of around £2.5m to be taken in the current financial year ending 31 March, with savings realised the following year.