London pre-open: FTSE to open with modest gains

24th Sep 2013 07:32

City sources predict the FTSE 100 will open up around five points from Monday's close of 6,557.37, a modest rise after yesterday's decline of 39 points. Monday saw heavy falls in the banking sector weigh on US markets as uncertainty over Federal Reserve monetary policy and an ongoing debate over the debt ceiling prompted investors to scale back risk appetite."With no less than 12 Fed speakers due to speak in the next five days investors will be looking for clues as to where each member stands vis-à-vis the taper question," said Senior Market Analyst Michael Hewson from CMC Markets. Today, UK company news revealed continued growth in the US and a return to growth for advertising revenues enabled publisher Euromoney Institutional Investor to signal strong trading for the fourth quarter. With improved year-on-year performance in the period, the FTSE 250 group said it expected to announce a pre-tax profit of at least £114m for the year to September.Finance house Close Bros reported a strong set of full year results as Asset Management returned to profit while Banking and Securities improved. Adjusted operating income increased 10% to £582.9m for the year ended July 31st 2013 and adjusted operating profit increased 24% to £166.5m, reflecting strong growth in Banking and a return to profitability in Asset Management. Adjusted basic earnings per share increased 23% to 83.1p.Falkland Oil and Gas widened its first half loss before tax to 0.9m dollars from last year's 0.2m dollars as the group injected more cash into exploration and evaluation of projects. During the first half the company and its co-venture partners conducted extensive 3D seismic surveys within its southern licences over the Diomedea fan complex and fault block area, adjacent to the Darwin discovery in the Falkland Islands.On today's agenda, UK data will include the release of a British Bankers Association report which is anticipated to show loans for house purchase jumped to 38,950 in August from 37,200 in July.Back across the Atlantic, US consumer confidence figures will be released amid concerns over the government budget debate and the possibility of a stimulus cut next month. The index for consumer sentiment in the world's biggest economy is expected to fall to 80.3 in September from 81.5 in August. Separately, data will show the US house price index rose 0.9% in July from 0.7% the prior month.The figures come as investors turn to debt ceiling talks after President Barack Obama over the weekend urged Congress to approve a budget to prevent a government shutdown by October 1st.