London pre-open: FTSE set to continue lower

19th Feb 2013 07:32

City sources predict the FTSE 100 will open down seven points from yesterday's close of 6,318, on what is expected to be another fairly quiet day of trading. Asian markets were seen heading lower this morning, while the closure of markets in the US on Monday means a lack of direction from across the Atlantic. Minutes were released from a Bank of Japan meeting which indicated that the government is neither planning to change the bank's law in the near future nor does it intend to purchase foreign currency bonds. International economic announcements due out today include EU new car registrations and both the EU and German ZEW surveys. In company news, Drax Group has said it will be investing significant capital to transform the business after the power station firm posted a 4.4% fall in annual earnings. The FTSE 250 group reported underlying earnings of £193m for the year to December 31st, down from £202m the year before.InterContinental Hotels said revenue per available room (RevPAR) slipped during its financial year but strong growth and cost cuts helped produce a double-digit increase in profits. The Holiday Inns and Crowne Plaza hotels owner said RevPAR fell to 5.2% for the year to December 31st 2012 from 6.2% a year earlier. Operating profit for the period increased 10% to $614m while revenue was up 4.0% at $1.84bn.After registering flat revenues last year, speciality chemicals producer AZ Electronic Materials said it believes its financial performance will show 'positive momentum' in 2013. Revenues were broadly unchanged at $793.9m in 2012 but were 2.0% higher on a constant currency basis.