Positive data out from China and comments from the US Federal Reserve are expected to lift UK-listed stocks early on in today's session.
City sources predict the FTSE 100 will open around 15 points higher than yesterday's close of 6,821.04.
HSBC Chinese manufacturing PMI registered its best monthly performance in the year so far, coming in at 49.7 for May, notably ahead of the 48.3 that had been expected and above the previous month's reading of 48.1.
That implies a strengthening in sequential growth momentum to 6.8% in annualized terrns in the second quarter from the 5.8% seen over the first three months of the year, Barclays Research pointed out.
"We have noted the risks of a property bubble bursting and think the ongoing correction in the property market remains a key to watch for growth and policy response", analysts Serena Zhou and Jian Chiang wrote to clients this morning.
Federal Reserve looking to refine its forward guidance
US stocks ended higher after the Federal Reserve meeting minutes showed officials forecast a rebound in growth.
The Fed last month decided to taper monthly bond purchases by a further $10bn to $45bn, citing improvements in the economy and in the jobs market.
While the minutes from the central bank's April meeting showed no big surprises, it revealed that members discussed the need to improve their guidance on interest rates.
They agreed that early communication of their exit strategy "would enhance the clarity and credibility of monetary policy".
Fed Chair Janet Yellen separately addressed New York University's 2014 graduating class at the Yankee Stadium, where she compared the central bank's efforts to easing the 2008 financial crisis to the struggles of Yankee baseball legends.
"Even (Babe) Ruth, (Lou) Gehrig and (Joe) DiMaggio failed most of the time when they stepped to the plate," Yellen said. "Finding the right path in life, more often than not, involves some missteps. My Federal Reserve colleagues and I experienced this as we struggled to address a financial and economic crisis that threatened the global economy."
Emerging markets prop up volumes at SAB Miller
A taste for lager among drinkers in emerging markets helped annual adjusted profits to fizz up by 2% to $5.7bn at brewing group SABMiller, although volumes declined in Europe and North America.
In this morning's UK-listed company news, Royal Mail reported a 2% rise in annual revenue to £9.45bn in its first full-year results since floating on the London Stock Exchange in October 2013. The company said parcel deliveries were the biggest contributor to growth, offsetting a fall in letter delivery revenue.
Unilever has agreed to sell its North America pasta sauces brands, Ragu and Bertolli, for $2.15bn cash to Japan's Mizkan Group. The annual turnover for Ragu and Bertolli is more than $600m.
UK water and wastewater giant United Utilities delivered a strong set of annual results and believes there is scope to deliver further improvements. The group also confirmed it is working closely with Ofwat, ahead of submission of its revised business plan at the end of June. Customers are set to benefit from below inflation growth in average household bills for the decade to 2020, it explained.
Goldman Sachs today upgraded its recommendation on shares
of Asos to 'buy' from 'neutral'.
The same broker has taken Prudential off of its 'Conviction Buy' list.