London pre-open: No treats for investors as FTSE set to open in the red

31st Oct 2013 07:32

City sources predict the FTSE 100 will open around 20 points lower than yesterday's close of 6,777.70, with investors feeling somewhat spooked by the Federal Open Market Committee's decision not to close the door on a start to Fed tapering even as soon as its next meeting, in December. Initial market commentary following the meeting highlighted the omission in yesterday's policy statement of a reference to "still tightening financial conditions", which is the phrase it used in its September 18th statement. Turning to today, the economic calendar is jam packed with the release of Eurozone inflation, US initial jobless claims, German consumer confidence and retail sales figures.The consumer price index in the Eurozone is expected to remain unchanged at 1.1% in October.In the US, initial jobless claims for the week ending October 25th will be unveiled along with the Chicago Purchasing Managers' regional manufacturing index which is pegged to fall to 55 in October from 55.7 in September. A reading above 50 signals expansion.Market research institute GfK's consumer confidence index for Germany is tipped to rise to 7.2 in November from 7.1 in October. Also out in Europe's biggest economy is a report on retail sales which are expected to rise by 1.1% in September, compared to a 0.3% increase a month earlier, according to consensus.UK company newsSince the start of July, Croda International has seen a continued improvement in sales trends, with growth across all regions despite subdued underlying market conditions, similar to those experienced during the first half of the year. Turnover was up 4.4% to £267.9m, although underlying sales were only 0.8% higher. However, the group warned that currencies continued to weaken and said market conditions are expected to "remain subdued". Antofagasta reported a decline in gold and copper production in the third quarter due to lower grades across its mining operations. Gold output dropped 11.7% to 67,700 ounces while copper production fell 3.4% to 174,200 tonnes.BG Group reported third quarter earnings fell four per cent to $1.1bn after production volumes dropped by 10% driven by reduced activity in the US, declines in Egypt and planned shutdowns. The FTSE 100 gas giant predicted that production would recover in the fourth quarter helped by the completion of its North Sea maintenance shutdowns and new projects coming on stream, particularly the Jasmine field in the North Sea.NR