Sharecast - The FTSE 100 was called to open 25 points higher at 7,514.
CMC Markets analyst Michael Hewson said: "The indifferent finish seen in the US has been shrugged off by Asia markets with a strong session there after the Bank of Japan’s latest Tankan survey showed a big improvement in manufacturers sentiment with the auto sector with the second successive month of gains as chip shortages eased.
"This rebound in Asia markets looks set to filter through into this morning’s European open with the DAX set to open at a new record high."
The ADP report for November is due at 1315 GMT.
Hewson said: "Today we get a look at the latest ADP payrolls report for November as an appetiser for Friday’s non-farm payrolls report. We are starting see increasing evidence that the US jobs market is starting to slow, with vacancies falling to their lowest level since March 2021 and with the last two ADP reports adding a combined 202k new jobs as private sector hiring slows.
"October saw 113k jobs added an improvement on September and November is expected to see an improvement on that to 130k, given that a lot of additional hiring takes place in the weeks leading up to Thanksgiving and the Christmas period so we’re unlikely to see any evidence of cracking in the US labour market this side of 2024."
In corporate news, tobacco and nicotine giant British American Tobacco (LON:BATS) (BAT) has scaled back its expectations for organic growth this year but expressed optimism about its long-term future as it ramps up aspirations to become a "predominantly smokeless business".
The company said macroeconomic pressures in the US were impacting its combustibles performance and organic revenues are now expected to grow at the low end of the 3-5% guidance range at constant exchange rates. However, full-year earnings should be in line with guidance.
BAT said it saw continued strong volume and revenue growth in its so-called New Category products, led by vape brand Vuse and tobacco-free nicotine brand Velo.
"With only 10% of the world’s 1 billion smokers currently using New Category products, the long-term opportunity for growth as we deliver on our transformation is vast," said chief executive Tadeu Marroco.
Weir Group (LON:WEIR) announced a new savings target ahead of its capital markets event. The FTSE 100 firm said it was now targeting £60m in absolute savings by 2026, as part of its goal to reach an operating margin of 20% by the same year.
It also confirmed that market conditions and its 2023 guidance remained unchanged, with the company on track to deliver an operating margin of 17%.
Anglo Australian mining giant Rio Tinto (LON:RIO) said it expected to start production from the Simandou iron ore joint venture in Guinea in 2025.
Rio owns two of four Simandou mining blocks as part of its Simfer joint venture with China’s Chalco Iron Ore Holdings and the government of Guinea. The company holds a 53% stake, with CIOH holding the balance.
First production from the Simfer mine is expected in 2025, ramping up over 30 months to an annualised capacity of 60m tonnes per year (with Rio’s share 27m).
