London pre-open: Flat start expected early on

30th Aug 2013 07:30

Markets are expected to open broadly unchanged on Friday after a strong rise the day before as investors pause for breath ahead of further developments from Syria.An upwardly-revised estimate of second-quarter economic growth in the States helped push stocks higher on Thursday as confidence in the recovery offset the increased likelihood that the Federal Reserve will taper asset purchases in September.City sources predict the FTSE 100 will open flat on yesterday's close of 6,483.05.Senior Market Analyst Michael Hewson from CMC Market said that "traders remain reluctant to take on significantly new positions ahead of the long weekend in the US, especially so when there remains so much uncertainty in the air, and we are at the end of the week and the month."Worries about an imminent Western military intervention in Syria continue to weigh on sentiment as politicians mull over whether to strike.UK Prime Minister David Cameron yesterday lost an initial vote to take military action with oppositions deciding against the move until they see firm evidence from UN inspectors of the use of chemical weapons by the Bashar al-Assad regime. There will be a further parliamentary vote next week.The hesitance by America's main ally complicates things for US President Barack Obama who has assured that the Syrian government will be held accountable for last week's deadly attacks.Defense Secretary Chuck Hagel has said that the US will not act without allies: "As to international effort and collaboration, it's the goal of President Obama and this government that whatever decision is taken, there needs to be an international collaboration and effort."Stocks to watchUK digital rights company Perform Group achieved a 28% rise in pre-tax profit to £10.9m in the first half driven by Watch&Bet renewals. Revenues rose 37% to £92.4m as the group invested n new content, products, sales capability and expanded into in the US and Canada.United Drug announced it was buying family-owned Canadian healthcare marketing business Medical Communications Group (MCG) for a total of £11.2m. It is the latest deal to expand the UK company's operations in Canada following its acquisition last year of Pharmexx Canada.Frankie & Benny's and Chiquito owner Restaurant Group saw revenues increased by 11.5% to £280m in the first half with like-for-like sales rising by 5%. Pre-tax profit rose 15% to £30m while the firm hiked its dividend by 17%.BC