London pre-open: Gains expected after Chinese data

3rd Dec 2012 07:27

The FTSE 100 index is expected to open with moderate gains on Monday morning after upbeat manufacturing figures from China released this weekend.City sources predict that the Footsie will open around 5,875 to 5,880, up from Friday's close of 5,867.The final reading for the HSBC China purchasing managers' index (PMI) increased from 49.5 to 50.5 in November, in line with the preliminary estimates. Meanwhile, the official PMI from National Bureau of Statistics rose to a seven-month high of 50.6, up from 50.2 in October."On top if this, both October figures were revised higher further suggesting that the Chinese economy will finish the year strongly," said market analyst Craig Erlam from Alpari.Closer to home, the UK manufacturing PMI for the November is due out this morning with the consensus predicting a modest rise to 48.0 from 47.5 in October. However this still represents a continued contraction in the sector, with the figure remaining below the crucial 50.0 level.Retailers will be in focus this week as the Christmas shopping season gets in to full swing. High Street bellwether John Lewis is said to have enjoyed one of its best weeks in recent years last week (ended Saturday) with sales up 9.3% year-on-year at £124.2m, painting an upbeat picture for the rest of the sector.Polymetal doubles estimates at AlbazinoPrecious metals giant Polymetal has announced a significant increase in mineral resources at its Albazino project in the Khabarovsk territory, Russia.The miner said that as of August 1st, mineral resources at Albazino were estimated at 37Mt with an average grade of 4.8g/t of gold (Au) containing 5.7Moz of Au. The previous estimate was less than half this size: as of January 1st, resources were predicted to be 19Mt at 4.5 g/t Au containing 2.8 Moz of Au.Mortgage provider Paragon Group of Companies backed up press speculation on Monday morning by confirming that it is thinking about acquiring small private bank Hampshire Trust.The Sunday Times reported yesterday that the buy-to-let lender was in discussions with Hampshire Trust over a deal that would grant it a banking licence for the first time, allowing it to start offering savings accounts its customers.Regeneration specialist St. Modwen Properties said expectations for the full year remain unchanged after strong momentum across all of the group. The group, which has increased its focus on the residential market, said its residential business is moving from strength to strength, with good sales rates and ongoing demand for its land.Chief Executive Bill Oliver commented: "Our robust business model and our practical, hands-on approach to development and asset management have enabled us to perform consistently well throughout the year and build on the strong results produced in 2011."BC