London pre-open: Flat start ahead of retail sales, corporate news

24th Jul 2014 07:46

A flat start is predicted for the FTSE following mixed trading in Asia and the US and ahead of a busy day for corporate earnings. Overnight, it was revealed that Japan's most recent trade data was rather unimpressive, although the HSBC Chinese manufacturing purchasing managers index (PMI) figure pleased traders. "Once again today, focus is likely to be firmly on the release of second-quarter earnings results and economic data, both of which we have in abundance," Alpari Market Analyst Craig Erlam said. "On the earnings front, we'll get results from a number of companies including Unilever, Nokia and Easyjet [...] As well as sentiment, these earnings results are likely to have an impact on central bank decisions even if the results themselves are not something that is discussed too heavily at the meetings."Elsewhere in the UK today, the latest figures for retail sales are due to be released, offering a key indicator to the economy's current performance. Sales are expected to have grown by 0.3% in June after a 0.5% fall the month before.Also on the day's agenda are the July manufacturing and services PMI readings from the Eurozone.The figures are generally expected to show a continued slowdown, coming in either on par with June's reading or slightly below. "The French numbers are expected to point to another contractionary month in the Eurozone's second largest economy, which is yet another concern for the area, given that people were hoping that this would be the year that we'd start to see some improvement," Erlam added. In this morning's company releases, Standard Chartered batted away rumours that Chief Executive Peter Sands or Chairman Sir John Peace might be replaced in light of recent disappointing results. The bank said in a statement that it did "not accept" the media rumours. "No succession planning is taking place as a result of recent investor pressure." It added: "The board wants to be absolutely clear that it is united in its support of both Peter Sands and Sir John Peace, and the management team, in delivering the refreshed strategy, restoring the bank to profitable growth and delivering returns for our shareholders."British Land has signed a lease agreement with Rothesay Life, a specialist pensions insurer, for level 25 at The Leadenhall Building in London. Level 25 provides 13,594 sq ft of space and Rothesay Life will take a 10-year lease with an option to break after five years. NR