London pre-open: FTSE to fall on global economy fears

17th Jan 2013 07:32

City sources predict the FTSE 100 will open down six points from yesterday's close of 6,104, on concerns over the global economy. The World Bank has cut its global growth forecast for 2013 due to the difficult recovery that economies worldwide are currently undergoing despite the improvement in financial markets. It now expects growth of 2.4% this year, down from its prior forecast of 3%. The news resulted in mixed trading in both the US and Asia. Today's international economic announcements include the US budget statement, the German wholesale price index, and the EU ECB report. In UK company news, Aberdeen Asset Management saw a three per cent rise in assets under management (AuM) in its first quarter helped by a strong gain in the Equities business. However, the investment management company said that while stock markets worldwide have begun 2013 with a "more positive" tone, "we believe that uncertainty still persists and that further periods of volatility remain likely in the months ahead". Translation and communications software firm SDL said full year revenue is expected to be in line with consensus expectations, but warned pre-tax profit for the period is expected to fall short of market forecasts. The Berkshire based group said revenue for the year ended December 31st 2012 is expected to be in the range of £269.0m to £270.0m compared to £229.0m in 2001 and versus consensus expectations of £270.1m. Valve engineering group Rotork has acquired the entire share capital of the operating companies of the Schischek group of companies, which design, manufacture and sell explosion-proof electric actuators. The acquisition will be made for €41m, which will be paid using cash reserves and committed bank facilities. Schischek's operating profit in 2012 is expected to be around €5.5m.