London pre-open: FTSE to start week lower

2nd Apr 2013 07:29

City sources predict the FTSE 100 will open down 15 points from Thursday's close of 6,412, returning after the long bank holiday weekend. Overnight, both US and Asian markets moved lower, with the former dropping on the back of a worse-than-expected reading of American manufacturing dampened sentiment.The S&P 500 finished with moderate losses, pulling back from its new all-time high of 1,569 reached on Thursday, which beat a previous record set in October 2007.The ISM manufacturing index for March slipped from 54.2 to 51.3, well below the 54 consensus estimate, as factories slowed production and orders declined.On today's busy agenda are the following; the German consumer price index and PMI manufacturing, the EU unemployment rate and PMI manufacturing, US factory orders, and speeches by the Presidents of the Minneapolis, Atlanta and Chicago Feds. Back in the UK, announcements include trends in lending, PMI manufacturing, mortgage approvals, and consumer credit. In company news, commodities producer and marketer Glencore has once again pushed back the deadline to merge with diversified mining group Xstrata. The companies are awaiting the approval of their multibillion-pound merger from China and had expected this to be received by April 16th, after having pushed back the long-stop date for the tie-up several times already.Utility services provider Telecom Plus has said it remains confident of reporting full year profits in line with market expectations following a strong fourth quarter for distributor, customer and service numbers. The FTSE 250 firm, which provides utility services to residential and business customers, said positive trends had continued into the final quarter and it expects to report a seventh consecutive quarter in which its service numbers have grown by more than 50,000.Steelmaker Evraz has signed an agreement to acquire a majority stake in the OSJC Timir iron ore project in Russia. The company will pay 4,950 Russian Ruble (around $160m) for a 51% interest in the prospect, which will be paid in several instalments. The project is a joint venture between Evraz and Alrosa, with the latter retaining a 49% stake (minus one share) following completion of the transaction.