London pre-open: FTSE set for early decline

16th Apr 2013 07:31

City sources predict the FTSE 100 will open down 23 points from yesterday's close of 6,344, tracking US stocks lower, which last night plunged following the release of weaker than expected economic data in China and the US. Falling commodity prices did little to encourage investors as gold plummeted to more than a two-year low, dragging other metals down. Spot gold dropped as much as 9.0% on Monday to as low as $1,336.04 an ounce. On today's agenda are the UK producer price index and the consumer price index (CPI); US industrial production, CPI and housing starts; and the EU's CPI and the harmonised index of consumer prices. Inflation in Britain is expected to have remained steady last month at a 2.8% rate of change, although some economists see the risk of a rise to 2.9% on the back of recent weakness in Sterling. As well, The European Central Bank's Mario Draghi is to speak before the European parliament. At least five Fed speakers are also scheduled to take the podium today. In UK company news, Rio Tinto has reported record first quarter iron ore production, driven by an improvement in capacity of the Pilbara mine in Western Australia. The mining giant achieved 61.2m tonnes (mt) of iron ore output and shipped 57.3 (mt), up 4.0% and 7.0% year-on-year respectively. Recruitment firm Michael Page International (MPI) said on Tuesday that 'tough economic conditions and weak market confidence' was partly to blame for a slump in profits in the first quarter. Gross profits totalled £126.8m in the first three months of the year, down 6.7% on the year before. Salamander Energy, the FTSE 250 oil and gas producer, has begun drilling on the Bedug-1 exploration well in the Bontang production sharing contract, in which it has a 100 per cent operated interest. The well will be drilled by the Ocean General semi-submersible rig to a depth of around 2,050 metres sub-sea and it targeting both gas and oil pay. NR