London open: Chinese price data worries Nomura

9th May 2013 08:01

UK stocks have moved slightly into the blue following an ephemeral dip just after the 'opening bell,' with Chinese price data on the front-burner in what is expected to be another 'light' day in terms of economic data releases. Today´s meeting of the Monetary Policy Committee is expected to be a non-event as policy-makers opt to maintain policy settings steady ahead of Mark Carney´s arrival in July. A Spanish sovereign debt auction towards 10:00 AM may help to set the tone for other asset classes today. Traders were caught somewhat offguard by the higher than expected consumer price data out in China overnight. The country´s CPI gained at a 2.4% clip in April, well above the previous month´s gain of 2.1%. For their part economists at Nomura had this to say: "We expect it [CPI] to rise further over the next several months." Far more relevant however may be the deeper decline seen in producer prices in the same month, versus March. The Japanese broker has expressed concern that it may also reflect a weak appetite for investment by firms, which is likely to increase doubts over the production outlook. "It also suggests the de-stocking process in the industrial sector is not over yet, which casts doubt on the consensus view of a GDP growth recovery in the second quarter, Nomura adds.No changes are expected to be decided upon at today´s Bank of England policy meeting. UK industrial production figures will also be forthcoming at 09:30. Spain´s Treasury will issue up to €4.5bn in medium and long-term debt this morning, which may help to set the tone for other asset classes. Stateside investors will be watching for the latest data on initial weekly unemployment claims and wholesale inventories. At least two Fed speakers are also expected to take to the podium today.Experian spearheads gainsIn UK company news, credit checking colossus Experian delivered full year results showing sales growth across all its global markets, with Latin and North America leading the way. Total group revenue came in at $4.7bn, compared to $4.5bn in 2012.British Land has signed a deal with BT to enable its customers to access free Wi-fi at its shopping centres. It has also agreed to work with BT to find a solution to deliver a 'robust' Wi-fi offering at a number of its open air shopping parks.Morrison Supermarkets posted a 1.8% drop in like-for-like sales for the first quarter as the UK grocer invested in opening more convenience stores. The jump in sales, which excludes fuel, for the 13 weeks to May 5th beat analysts' expectations for a 2.0% decline and were up from the previous quarter's 4.1% drop. Bank of America has downgraded the company´s shares to neutral, albeit while increasing its target price from 284p to 304p.Unusually severe winter weather hit first quarter production at Eurasian Natural Resources' iron ore division and revenue decreased slightly when compared to the corresponding quarter of a year ago as a result of weaker commodity prices, the company warned.At least three large brokers have today lowered their price targets on shares of emerging market-focused lender Standard Chartered.AB