London pre-open: Declines expected early on, Chinese inflation in focus

10th Mar 2015 07:36

UK stocks were set to fall for the third straight day on Tuesday after setting a three-week low the previous session on the back of renewed concerns about Greece.City sources predict the FTSE 100 will open 14 points lower than Monday's close of 6,876.47, its lowest close since 16 February.Economic data from China was in focus for investors early on as consumer-price inflation rebounded from a five-year low but producer prices remained in deflation, raising the prospects of further stimulus measures by the country's central bank.The annual rate of consumer price index (CPI) inflation picked up to 1.4% in February from 0.8% in January, above forecasts for a 1% rise. The uptick came after the People's Bank of China introduced more stimulus measures and the Lunar New Year holiday pushed up food and transport costs.At the same time, China's producer price index dropped 4.8% from a year ago, worsening from January's 4.3% drop and marking three full years of declines.Analysts at Goldman Sachs said they expected the rise in the CPI inflation to "alleviate the anxiety policy makers have about weak growth and risk of deflation". However, they added: "We still expect further loosening measures in the coming months as overall economic activity growth remains weak and CPI inflation is likely to ease again in March as the Chinese New Year distortion disappears".Stocks to watchCredit Suisse has poached Prudential's boss Tidjane Thiam to replace long-standing chief executive Brady Dougan as chief executive. Prudential, which also released final results showing operating profits up 14%, said it had identified a successor from within.BHP Billiton's president Jimmy Wilson has said the company has held strong amid "challenging market conditions" and delivered an underlying earnings before interest and tax margin of 49% as well as a return on assets worth 34%.Copper mining group Antofagasta has been told by a court that it must destroy at least part of its tailings dam at the Los Pelambres project in Chile as it is affecting the natural flow of a nearby river. The ruling came amid ongoing protests at the project by locals seeking action to help alleviate current drought conditions.