London pre-open: FTSE to get a boost from Chinese data

24th Oct 2012 07:32

City sources predict the FTSE 100 will open up eight points from yesterday's close of 5,798, boosted by stronger-than-expected manufcaturing data from China, which it is hoped will do some damage control on the huge losses seen in the US - particularly on the Dow Jones - last night. US stocks were firmly in retreat on Tuesday, with the Dow Jones taking a plunge following weaker-than-expected earnings and ongoing concern over Spain and the wider economy. The Dow Jones fell 243 points, its biggest one-day loss since June. HSBC's preliminary manufacturing Purchasing Managers' Index (PMI) climbed from 47.9 in September to 49.1 for October, just short of 50, the mark at which expansion is indicated. In company news, cigarette and tobacco giant British American Tobacco (BATS) managed to keep its underlying rate of revenue growth stable in the third quarter, though volumes fell as expected. Group revenue for the nine months to the end of September at constant currency grew by 4%, in line with first-half growth, driven by "continued good pricing", the company announced on Wednesday morning. However, on a reported basis, sales fell 1% on the back of adverse exchange rate movements. Organic revenues at constant currency rose by 3%. Holiday Inn and Crown Plaza owner InterContinental Hotels Group (IHG) saw growth in US revenue per available room (RevPAR) moderate in the third quarter as a result of a seasonal impact, the company said on Wednesday. Speaking at the annual conference for hotel owners in the Americas region, IHG said that RevPAR - a key measure in the hotel industry - in the US rose by 4.6% year-on-year in the three months to September 30th, down from the 8.0% growth seen in the first half.Bus and train group National Express said overall third quarter trading remained resilient, despite the increasing austerity measures, with profit on target for the year. The transport operator saw a strong performance in UK Bus and a strong operational performance in Rail, while coach endured a difficult year, it said. Trading remained resilient in Spain while North America school bus revenue grew 2% year-to-date.Economic announcements out from the UK today are set to be thin on the ground, with just the CBI Industrial Trends Surveys expected at 11:00. Internationally, US new house sales are expected in the afternoon, along with the new house price index, crude oil inventories and Federal Open Market Committee (FOMC) interest rate. NR