London pre-open: Cautious gains expected on FTSE ahead of data

27th Nov 2013 07:29

City sources predict the FTSE 100 will open around six points higher than yesterday's close of 6,636.22, balancing expectations for a data-heavy session. This follows a cautious approach seen over in the US last night ahead of the end of a shortened week on Wall Street with markets celebrating the Thanksgiving holidays.Today's focus will be on UK gross domestic product, which is expected to show the economy grew by 1.5% in the third quarter in line with the previous three months. The report comes after Bank of England (BoE) Governor Mark Carney yesterday addressed members of the Treasury Committee in Britain's lower house of parliament. Carney faced questions over a possible hike in interest rates, given the stronger-than-expected pick-up in economic growth and the labour market. However, Carney stressed that the BoE was in no hurry to raise the record-low benchmark interest rate even if unemployment fell to the 7% threshold at which the central bank would consider tightening monetary policy.It is also set to be a busy day macro wise on the other side of the Pond, with reports on durable goods orders, mortgage applications, initial jobless claims, manufacturing and University of Michigan confidence all due out. Durable goods orders in October may fall 1.9% compared to a rise of 3.7% a month earlier, according to forecasts.Initial jobless claims are expected to have risen to 330,000 in the week to November 23rd from 323,000 the previous week.The Chicago purchasing managers' index for manufacturing is tipped to drop to 60 in November from 65.9 last month. The preliminary reading for the University of Michigan consumer confidence index is forecast to increase to 73 in November from 72 in October. Federal Reserve policymakers are using data to gauge the health the US economy in order to determine when to begin scaling back quantitative easing. Back on this side of the Atlantic, and in company news, water group United Utilities said it would be discounting bills next year as it reported a rise in profits in the first half. The FTSE 100 firm insisted that bills will go up by no more than inflation in an effort to improve customer satisfaction.FTSE 250-listed publishing and conference company Informa has acquired a stake in Baiwen, which owns and organises the annual China Beauty Expo (CBE). It is the largest beauty trade event in China, comprising three co-located exhibitions that take place annually in Shanghai in May, namely Cosmetics China, Cosmetech and Beauty Shanghai. Ophir Energy has begun test drilling at its Mlinzi Mbali-1 well in its Block 7 offshore Tanzania. The 80%-owned block is estimated to contain prospective resources of roughly 10trn cubic feet (TCF) of oil.FTSE 250 outsourcing company Serco has completed the sale of its London streets maintenance and UK transport technology business to Cubic Corporation. The disposal, for £43.5m, is in line with the group's "proactive portfolio management involving an ongoing assessment of operations against their fit to our strategy".NR