London pre-open: FTSE to retest record high early on

10th Apr 2015 07:43

UK stocks are expected to retest record highs on Friday morning ahead of a relatively quiet day in terms of economic data.City sources predict the FTSE 100 will open 24 points higher than Thursday's close of 7,015.36. The index set an all-time closing high of 7,037.67 on 23 March.Friday's will see the release of a number of domestic economic indicators, such as UK industrial and manufacturing production, both of which are predicted to show a slight slowdown in growth in February. The NIESR also gives its latest estimate for UK gross domestic product.Overnight, data showed that the annual rate of Chinese inflation remained steady at 1.4% in March, surprising analysts who expected a slowdown to 1.3%.Nevertheless, despite the People's Bank of China's (PBOC) recent measures - cutting interest rates and the reserve requirement ratio - deflation remains a real risk given that producer prices slumped by 4.6%. These could "act as a drag on prices paid by the consumer further down the road", said Oanda analyst Craig Erlam."I think more rate cuts are inevitable from the PBOC given how far below target inflation is, the only question is how long they'll wait," he said.Stocks to watchAfter a strong third quarter showing, recruiter Hays said it now expects to deliver strong operating profit growth for the full year, with second half operating profits slightly ahead of the first. In the three months to 31 March net fees increased 5% on a headline basis and 8% on a like-for-like basis against the prior year.FTSE 250 gold miner Acacia Mining has inked two further earn-in agreements to expand its footprint in the Houndé belt in Burkina Faso which it says presents a "great opportunity". Chief executive Brad Gordon said the new agreements gives Acacia "further access to the most prospective trends within the Houndé belt, which is host to a number of high grade discoveries".UK wine merchant Majestic Wine on Friday announced it will buy Naked Wines, a customer funded international online wine business for up to £70m in a reverse takeover. The agreement includes approximately £50m payable on completion in cash, plus up to £20m contingent consideration payable in Majestic's ordinary shares. Cash consideration is being funded by new debt facilities. Majestic said that the deal is expected to be enhancing to fully earnings in 2017.