London pre-open: Slow start expected as investors await economic data

15th Jul 2014 07:49

The UK stock market is set for a quiet start on Tuesday as investors turn cautious following a decent performance the previous session. City sources predict the FTSE 100 will open around six points lower after rising 0.8% to 6,746.14 by the close on Monday.Dealer Jonathan Sudaria from Capital Spreads said: "The bargain hunters were out in force yesterday and anything that was at a knock down price after recent falls has been snapped up. However, traders are taking a little breather before UK [inflation] and the German ZEW surveys to see how sentiment pans out."Consumer prices in Britain are expected to have risen at an annual rate of 1.6% in June, up from a 1.5% gain in May. However, following the recent slip in inflation, any downside surprise today could ease concerns about an imminent rate hike by the Bank of England.Data already released this morning by the British Retail Consortium and accountants KPMG showed that UK retail sales fell by 0.8% on a like-for-like basis in June, surprising analysts who had estimated a pick-up from the 0.5% growth in May to 1.0%. Total retail sales rose 0.6% but this was still the lowest growth since May 2011, on the back of rate-hike fears and England's early exit from the World Cup.German economic sentiment in July as measured by the closely-watched ZEW data is predicted to have slipped slightly with "the steady flow of weakening data from Germany set to continue", Sudaria said.Later on, Janet Yellen will be in focus as the Federal Reserve Chair gives her semi-annual testimony to the Senate Committee.In company news this morning, Costa and Premier Inn owner Whitbread has announced that Non-Executive Director Richard Baker is to replace Anthony Habgood as Chairman when he steps down later this year. Baker is currently also the Chairman of both Virgin Active Group and DFS Furniture and used to be Chief Executive of Alliance Boots and Chief Operating Officer of Asda.Customer numbers rose by 25% in the first quarter at utility supplier Telecom Plus, which made it increasingly confident of lifting full year profits by almost 50% for the full year, as previously guided. The FTSE 250 company said it expected to gain increasing customers in the coming months due to regulatory changes in the energy industry.BC