London pre-open: Modest rise expected after another strong US finish

15th Nov 2013 07:24

City sources predict the FTSE 100 will open around 12 points higher than yesterday's close of 6,666.13, tracking yet another record finish for the Dow Jones Industrial Average and S&P 500 last night, boosted by hopes of a continuation of stimulus by the Federal Reserve.Markets were focused on the hearing of soon-to-be Fed Chairwoman Janet Yellen before the Senate Banking Committee, as she gave a dovish outlook on the near-term future of monetary policy. In today's news in the UK, Barclays is reportedly set to slash 1,700 jobs in the UK as the bank reduces the number of branches it has in operation, due largely to the way in which people now bank. The group has launched a voluntary redundancy scheme. Also of importance, a number of Chinese media reports published today upped expectations that the Communist Party would announce a variety of reforms in a paper due out next week. A short statement lacking in detail released at the close of the party's Central Committee's Third Plenum disappointed markets with its lack of specifics. A longer report is now expected early next week. Revised Eurozone inflation figures expected to confirm estimateRevised Eurozone inflation figures will be released today after the European Central Bank's surprise interest rate cut.The consumer price index (CPI) for October is expected to be confirmed at 0.7% following last week's estimate, which fell unexpectedly from 1.1% the month before.The ECB reduced its benchmark interest rate to 0.25% from 0.50%, citing concerns of deflation.ECB President Mario Draghi at the time warned that the outlook for the Eurozone's economy could deteriorate in the coming months."The risks surrounding the economic outlook for the euro area continue to be on the downside," he said. "Developments in global money and financial market conditions and related uncertainties may have the potential to negatively affect economic conditions. Other downside risks include higher commodity prices, weaker-than-expected domestic demand and export growth, and slow or insufficient implementation of structural reforms in euro area countries."Later on in the day will be the release of US industrial and manufacturing production reports.Industrial output is expected to rise 0.1% in October, compared to 0.6% jump a month earlier. Manufacturing is also tipped to increase last month at the same rate as September by 0.1%.UK company newsIn UK company news, Vedanta Resources reported a 17% fall in first-half revenue to $6.2bn, reflecting falling oil and metal prices. In the six months to September 30th average prices of copper, aluminium, zinc and Brent crude were down 9%, 7%, 3% and 2%, respectively.John Manser has been re-appointed as Deputy Chairman of drinks group SABMiller due to the deterioration of the health of current Chair Graham Mackay. Mackay took a medical leave of absence in April for treatment following surgery for a brain tumour, with Manser temporarily stepping in.FTSE 250-listed Ultra Electronics warned that revenue for 2013 would be slightly below the previous year's, hit by 'a number of headwinds', in particular the US government-funded market. Overall, its performance is expected to be broadly in line with expectations. NR