London pre-open: FTSE to take breather ahead of GDP data

28th Jan 2014 07:11

- Stocks to inch lower- 2013 GDP to show strongest year since 2007- Also focusing on US consumer confidence and durable goods City sources predict the FTSE 100 will open two points lower than yesterday's close of 6,550.66 as investors pause for breath after two sessions of heavy declines. US stocks finished slightly lower last night after a choppy session, with traders showing caution ahead to the Federal Reserve's next policy meeting, with the central bank widely expected to continue with its plan to taper its quantitative easing programme. Ongoing turmoil in emerging markets has hit sentiment in recent days as investors scaled back risk appetite on concerns of a slowdown in China after some weak data. Poor results from Apple have further dampened sentiment overnight, with the stock plunging 9% in after-hours trading in New York.Over in Asia stocks were mixed, although broadly lower with the exception of a small gain on the Shanghai Composite. Much of today's focus will be on UK gross domestic product data, which is tipped to show a rise of 2.8% year-on-year in the fourth quarter, up from 1.9% in the prior quarter. Growth for 2013 is predicted to be the strongest since the year before the financial crisis. In an interview with the BBC, Business Secretary Vince Cable said the strength marked the "end of the beginning rather than the beginning of the end". Markets will also be closely watching US consumer confidence and durable goods data as the Federal Reserve's next policy decision looms. The consumer sentiment index for January is expected to dip slightly to 78 in January from 78.1 in December. Analysts predict another report on US durable goods to show an increase of 1.8% in December, compared to a rise of 3.4% a month earlier.The central bank, which announces its decision tomorrow, began scaling back its monthly bond purchases by $10bn to $75bn. They may make another $10bn cut, according to the consensus forecast.In this morning's company news, Amec has won a $974m contract with BP for the second stage of development of the Shah Deniz gas field in the Caspian Sea. The engineering giant, through its Amec Tekfen Azfen consortium, will provide its project and construction management services.Property giant British Land said it made decent progress in its fiscal third quarter with like-for-like (LFL) occupancy growing year-on-year. LFL occupancy in the three months to December 31st 2013 increased by 30 basis points to 97.1% with the company citing an improving operational performance in both office and retail assets.Crest Nicholson's pre-tax profit before exceptionals in the year to October 31st 2013 was up 40% to £86.8m (after one-offs £80.9m). Forward sales at mid-January were £329.5m (2012: £218.7m), 51% ahead of prior year with 51% of this year's forecast secured (2012: 45%). Turnover was at £525.7m, up 29%; housing legal completions were up 15% at 2,172 (2012:1,882).Convenience store producer Greencore recorded solid revenue growth over the Christmas period and remains confident of meeting full-year forecasts. The group, which makes ready meals, sandwiches and quiches, recorded revenue of £320.5m for the 13 weeks to December 27th 2013, an increase of 7.2% from the previous year.NR