London pre-open: FTSE tipped to fall after US fails to hold onto gains

26th Aug 2015 07:17

(ShareCast News) - City sources predict the FTSE 100 will open 40 points lower than Tuesday's close of 6,081.34.US market's inability to hold onto gains was likely to lead to a negative open for Europe on Wednesday morning, CMC Markets UK analyst Michael Hewson said, although a rebound in Asia has cushioned some of the effects."The inability of US markets to hold on to yesterday's gains does raise the question of whether we've seen the end of the recent weakness in equity markets," Hewson said.He added that July durable goods numbers (excluding transport) released on Wednesday should give a good indication of whether the US consumer is confident about big ticket items.UK CBI reported sales for August were also scheduled for release on Wednesday.Stocks to watchPaddy Power and Betfair have agreed to the key terms of a possible merger that would create one of the world's largest public online betting and gaming companies by revenue. Betfair said on Wednesday that the combination has compelling strategic logic and represents an attractive opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.Sir Martin Sorrell's WPP posted a 44.5% boost in first half pre-tax profit to £709.7m from £491.1m, off reported revenue growth of 6.8% to £5.839bn from £5.469bn. The advertising giant said a stronger third quarter was likely, as budgeted and forecast.In the pressBanks, already facing intense competition from hedge funds to secure top talent, have warned that they risk being handicapped in the hiring race by an overzealous interpretation of EU bonus rules. A legal analysis of EU legislation covering bankers' pay as made it clear that the rules must be applied across the sector, in theory removing the right of countries to apply exemptions. - Financial TimesActive managers of UK equity funds have shielded investors from the worst of the market turmoil, with seven in 10 performing better than the falling FTSE 100 and FTSE All-Share indices. - Financial TimesMove over Billy and never mind the meatballs, the boss of John Lewis has warned Ikea that the department store is aiming to take its place as Britain's biggest home and furniture retailer. Ikea arrived in the UK in 1987 and its warehouse stores have become firmly established as the country's favourite destination for flatpack furniture, chairs and lighting. - The Guardian