London pre-open: FTSE 100 expected to consolidate recent gains

28th Jun 2013 07:32

The FTSE 100 is expected to open flat to slightly higher on Friday morning as markets head into the final trading day of the second quarter.City sources predict the FTSE 100 will open up around six points from yesterday's close of 6,243.The index has delivered solid gains over the past three consecutive sessions, bouncing off a five-month low reached on Monday, as markets begin to accept the inevitability of a 'tapering' of US asset purchases and start to price in a recovery in the States as economic data continues to improve.Officials from the Federal Reserve spoke out yesterday, attempting to ease market fears about an impending withdrawal of stimulus that had sparked a heavy sell-off across financial markets over the past month.Specifically, head of the New York Fed William Dudley said that rise in short-term interest rates is "very likely to be a long way off" even if the central bank begins to scale back its quantitative easing programme later this year. He said that markets were wrong to think that tighter policy is coming soon. Stocks to watchPublic services outsourcing group Serco has countered analyst fears and reassured that profit margins have been maintained at previous year's levels and revenues were ahead of expectations in the first half. Ultra Electronics has been awarded a £14m contract extension with the UK's Ministry of Defence (MoD) for End Cryptographic Unit Replacement Programme (ECURP). The group's Communication and Integrated Systems business is providing MoD with high grade cryptographic capability.Biopharmaceutical business AstraZeneca has completed the acquisition of Pearl Therapeutics, a California-based company focused on the development of inhaled small-molecule therapeutics for respiratory disease.