London pre-open: Investors await outcome of US election

5th Nov 2012 07:26

City sources predict the FTSE 100 will open down 29 points from yesterday's close of 5,869, as investors await the outcome of the US presidential election, the results of which are due this week. Furthermore, there is some nervousness ahead of key votes in Greece this week on further austerity measures (Wednesday and Saturday). As well, the People´s Republic of China will see a change in leadership this week. No doubt investors will also factor in Friday's performance in the US, where Wall Street benchmarks closed with losses of around one per cent as a better-than-expected jobs report failed to give stocks a boost. As well, Asian stocks were dragged lower last night by several car manufacturers after it was revealed Hyundai and Kia Motors would pay compensation following the revelation they had overstated the fuel efficiency of some of their cars. Economic announcements due out today include UK Official Reserves, and US ISM Non-manufacturing Services purchasing managers data. UK services PMI for October is released today at 09:28. The consensus expects it to have edged down to 52.0 from 52.2 in September.In company news, engineering giant Weir Group said that it is set to deliver double-digit profit growth this year despite weak order inputs from its Minerals and Oil & Gas divisions in the third quarter. Weir, which designs and manufactures products and engineering services for the minerals, oil and gas, and power and industrial markets, said on Monday morning that both revenue and profit growth slowed down in the third quarter due to a lower opening order book and reduced activity at its upstream divisions, SPM and Mesa. The firm said this was expected.Satellite operator Inmarsat saw improved and more stable revenues from its core wholesale operations in the third revenue, leaving it well placed to hit this year's and next year's revenue targets. Mobile satellite services (MSS) revenue at Inmarsat Global rose 3.3% in the three months ended September 30th to $186.7m from $180.7m the year before. However, the Other Income figure at Inmarsat Global, which includes the co-operation agreement with cash-strapped US telecoms network firm LightSquared, crashed to £11.7m from £64.5m the year before.Insurance goliath Prudential has entered into a long-term exclusive bancassurance partnership in Thailand with Thai firm Thanachart Bank. The deal between the two involves the Pru buying the Thanachart Life Assurance Company from Thanchart for £358m.