London pre-open: Modest extension to last week's strong gains

21st Oct 2013 07:30

City sources predict the FTSE 100 will open around nine points higher than Friday's close of 6,622.58, providing a modest extension to last week's gains on hopes of a near-term continuation of US stimulus and a pick-up in Chinese growth.It was revealed on Friday thatChinese gross domestic product grew at a year-on-year rate of 7.8% in the third quarter, rebounding after the 7.5% growth seen in the second quarter.The FTSE 100 managed to close 2.1% higher on the week as investors also showed optimism that the Federal Reserve could delay tapering stimulus given that the government shutdown is likely to have dampened growth in the fourth quarter. Markets are now looking ahead to the delayed release of the September US employment report tomorrow, which will be key factor in the Fed's next move. Today's economic announcements include US Existing Home Sales and the German Producer Price Index, which revealed growth of 0.3% in September, compared to a 0.1% decline the previous month. In UK company news, FTSE 250 infrastructure group Balfour Beatty has been awarded a Crossrail contract by Network Rail for the electrification of a 12.5-mile section of the Great Western Main Line. The £64m deal covers the installation of new overhead line electrification equipment on all lines between Stockley Junction and Maidenhead on the Crossrail West Outer section.Publishing and conference company Informa released a statement saying that in the nine months ended September 30th the group delivered a 1.1% increase in revenue growth, and that its full-year expectations remain unchanged. The company's Chief, Peter Rigby, described the most recent quarter as "solid: and reported a good performance in each division. He added that following the sale of its five Corporate Training businesses at the end of September the group was now "more focused and less volatile". HICL Infrastructure has invested in two social infrastructure projects in the UK that will build a new children's hospital and four new secondary schools. The investment firm has paid a combined £9.2m for a 50% shareholding in the Brighton Children's Hospital Project and a 29.1% stake in the Falkirk Schools NPD Project. Civil engineering group Costain has won a contract from France's EDF to help build the UK's first new nuclear power station for a generation. Costain said it had finalised a deal to design and build the water cooling systems for the new Hinkley Point C nuclear power station in Somerset.NR