London pre-open: equities expected to follow US and Asia lower

19th Aug 2015 07:17

(ShareCast News) - City sources predict Wednesday's session will see the FTSE 100 open 13 points lower than Tuesday's close of 6,526.29.European equities are set to slip, tracking negative overnight cues from the US and Asia, London Capital Group night dealer Jonathan Sudaria said."There had been a brief amount of respite concerning the health of the Chinese economy, but with nothing to actually soothe trader's fears coming out; they are once again choosing to ditch their holdings," Sudaria said.OANDA senior market analyst Craig Erlam said all eyes will be on the US as both CPI inflation figures and minutes from the July Federal Open Market Committee meeting would be released on Wednesday.US CPI figures are expected to have risen 0.2% year on year in July, with core prices tipped to remain at 1.8%, CMC Markets chief market analyst Michael Hewson said.Hewson said the main focus in Europe would be the latest vote on Greek bailout, which is expected to pass."Attention will be focussed on how many German MP's rebel against the motion, with some estimates putting the numbers as high as 100," Hewson said.Stocks to watchMiner Glencore cut its capex target for the full year as it posted a 29% drop in core first-half earnings on the back of declining commodity prices. For the six months ended 30 June, adjusted earnings before interest, tax, depreciation and amortisation came in at $4.61bn, down from $6.46bn in the first half of last year. UBS has been expecting adjusted EBITDA of $5bn.Imperial Tobacco saw underlying volume and revenue growth slow in the third quarter, as it completed the huge acquisition of brands in the USA from Reynolds American. After the first nine months of its financial year, the cigarette maker remained on track to hit its full year numbers, with underlying volume up 10% and underlying net revenue up 14%, though this was down from 12% and 15% in the first six months of the year.In the pressThe flood of capital gushing out of emerging markets has risen towards $1 trillion over the past 13 months, roughly double the amount that left during the financial crisis, amid slumping confidence in developing economies. - The Financial TimesOne of the world's biggest sovereign wealth funds is part of a consortium that is plotting a bid for London City Airport, which has been valued at £2bn. Wren House Infrastructure Management, an investment vehicle owned by the Kuwait Investment Authority (KIA), has teamed up with Ontario Teachers' Pension Plan (OTPP), the Canadian giant investment fund, and investment firm Hermes to make an offer for the airport, according to sources. - The Daily TelegraphAsda shocked the grocery trade yesterday by reporting its worst sales performance since it was taken over by Walmart 16 years ago, with discounters continuing to poach its customers. Like-for-like sales fell by 4.7% in the second quarter after a 3.9 per cent slide in the first quarter. - The Times