London pre-open: FTSE set to decline in early trading

3rd Apr 2013 07:29

City sources predict the FTSE 100 will open down 18 points from yesterday's close of 6,491, following a mixed performance across Asia overnight, with Japanese stocks rising strongly on the back of a potentially crucial central bank policy meeting.In the US, equities climbed Tuesday as new data pointed to further recovery in the nation's debt stricken economy. Orders placed with US factories in February rose 3.0%, the biggest rise in five months, according to a report from the Commerce Department. Also signalling a return to economic growth was the Federal Reserve's Flow of Funds Report which showed increase in the number of people who process credit transactions. Today's international economic announcements include the EU consumer price index and harmonised index of consumer prices, US crude oil inventories, MBA mortgage applications and the ADP employment report, and the Chinese non-manufacturing PMI. Closer to home the agenda includes PMI construction and the BRC shop price index.In UK company news, Interserve, the international support services and construction group, has exchanged contracts to develop the Haymarket area of Edinburgh into a mixed-use site. The group has formed a joint venture company with the current land owner, Tiger Developments, and will initially invest £10.5m in the project. A further £150m-worth of construction works will be undertaken by Interserve Construction.UK engineering company Babcock International has said its annual results will show 'strong progress' on the previous year. In a trading statement ahead of the firm's results for the year ended March 31st 2013, Babcock announced it had traded well on a healthy pipeline of contracts in civil and military markets. The order book remained stable at around £12bn. Since the half-year results, the group has won agreements and been chosen as preferred bidder on contracts valued at over £1.0bn. Great Portland Estates (GPE), the FTSE 250 real estate investment trust, has purchased a 97,807 square-foot office building on Old Street, Central London, which represents an opportunity to create 'significant value', the firm said on Wednesday morning. GPE's 50/50 joint venture with the BP Pension Fund, the Great Ropemaker Partnership (GRP), has acquired 148 Old Street from the BP Pension Fund for £30m.NR