London pre-open: Limited gains expected on FTSE

25th Sep 2012 07:26

City sources predict the FTSE 100 will open up four points from yesterday's close of 5,839, edging higher on the back of hopes for an improvement in economic data out from China and Brussels. However, gains are limited by a downbeat performance in yesterday's session in the US, hit by ongoing concerns over the Eurozone and global growth, with tech stocks leading the way lower. Denting confidence further was data out from Germany's IFO business climate indicator, which fell to 101.4 points in September, down from 102.3 in the previous month and the 102.5 expected by the market consensus. The business climate gauge declined for a fifth consecutive month according to data from the IFO Institute in Munich. This was in addition to France and Germany's failure to agree a schedule for initiating shared oversight of the region's banking sector over the weekend. Only several second-tier economic indicators are due out this afternoon Stateside. In company news, mining giant Xstrata announced production had begun ahead of schedule at its Lady Loretta zinc mine in north-west Queensland, Australia. The mine was originally supposed to start production at the end of 2013, but first deliveries of zinc-lead-silver ore to the company's Mount Isa processing plant are now set to begin later this month. Chief Operating Officer of Xstrata Zinc Australia, Brian Hearne, said the project was of significant importance to the firm's production profile.Finance house Close Bros reported a mixed set of full year results with strong growth in its banking division while difficult trading conditions hurt securities. The group said asset management has mostly completed its restructuring and is now positioned for future profitability. Overall, it believes it is well positioned for the current financial year.Business publisher and exhibitions firm Euromoney Institutional Investor said trading has been in line with expectations since its last update in late July. As flagged in July, market conditions became noticeably tougher from June, particularly in Europe. As a result, revenues for the fourth quarter are expected to be broadly in line with the same period last year, with growth in subscriptions offset by weakness in advertising and delegate revenues. NR