London pre-open: FTSE to edge higher ahead of BBA data

24th May 2013 07:40

City sources predict the FTSE 100 will open up six points from yesterday's close of 6,697, as markets calm after Thursday's heavy losses and ahead of the Bank Holiday weekend. On the other side of the Atlantic, stocks ended the day modestly lower after a batch of upbeat US data partially offset recent comments from the Fed. Looking ahead to today, the spotlight will shine on economic data which includes mortgage lending figures from the British Bankers' Association (BBA) and US durable goods orders. The BBA last month showed UK mortgage approvals fell 1.2% on the year in March to 31,227 as the government's Funding for Lending Scheme made the mortgage market more competitive. Net mortgage lending dropped by £328 in March. "Mortgage approvals edged up back to levels of a year ago and the prospect of more first-time buyers entering the market during 2013 is likely to help mortgage chains in due course," BBA Director David Dooks said at the time. "However, economic uncertainty and subdued confidence continues to determine borrowing behaviour, with households and businesses reducing borrowing and building up deposits where possible." In the US, data on the durable goods orders will follow last month's release which showed a sharp decline in March. Orders for goods fell 5.7% in March, the biggest fall in seven months, indicating a slowdown in recovery. In today's UK company news, Smiths Group, the global technology firm listed on the FTSE 100, said that its full-year guidance remains unchanged after underlying revenues and profits in the first three quarters were ahead of last year. "Overall, expectations for the year remain in line with the outlook given at the interim results in March, albeit with a slightly different mix by division," the firm said on Friday.3i Group has made an irrevocable offer to Barclays Bank to acquire Barclays Infrastructure Funds Management, its European infrastructure fund management business, which has assets under management of approximately £780 million and an investment team based in London and Paris. 3i said the transaction would represent a 'significant milestone'.FTSE 100-listed chemicals manufacturer Croda International has completed the acquisition of the Specialty Products business of Arizona Chemical, adding a portfolio of oil gelling polymers and expanding its footprint in the polymers market.