London pre-open: FTSE to track US markets higher

28th Feb 2013 07:27

City sources predict the FTSE 100 will open up 37 points from yesterday's close of 6,326, tracking gains seen in Asia and the US overnight. US markets traded higher on Wednesday after bullish economic data indicated that the nation's housing sector is gaining momentum. January pending home sales climbed by 4.5%, according to the National Association of Realtors, smashing expectations and marking the highest growth rate recorded since April 2010.Included on today's busy agenda are the following: the German balance of payments, German CPI, the German PMI retail reading, US Bloomberg consumer confidence, US continuing claims, Us initial jobless claims, EU PMI retail reading, and EU CPI. Closer to home we can expect the UK PMI retail reading and the GFK consumer confidence data. In UK company news, Capita, the UK outsourcing group listed on the FTSE 100, has announced that the Cabinet Office has extended its contract to exclusively manage the provision of training across the Civil Service for a further two years from February 2014 to the end of March 2016. Capita expects the deal to generate revenues of at least £30m per annum over the two year extension. Royal Bank of Scotland boss Stephen Hester has said there was important work still do after the company released its annual results. The bank beat analysts' expectations, posting core operating profits of £6.3bn, up 5.0% from 2011, with retail and commercial down 6.0% but markets improving by 68%. Group operating profit almost doubled year-on-year as it climbed from £1.8bn to £3.4bn buoyed by core growth and a 32% reduction in non-core losses.Recruitment company Hays posted a four per cent decline in half year net fees and warned several markets are likely to remain challenging. Net fees reduced to £360.3m for six months ended December 31st from £373.8m a year earlier. Pre-tax profit fell 6.0% during the period to £56.7m. "Looking ahead we expect overall conditions to remain fragile, but we have seen an encouraging return to work in our key temp and contractor businesses," Hays said.