London pre-open: Slow start expected despite record gains in US

11th Apr 2013 07:28

City sources predict the FTSE 100 will open down seven points from yesterday's close of 6,387, despite record gains seen in the US overnight. However, expectations amongst traders were that this breather would be temporary, with risk appetite building as the positive vibe in the US fed across the Atlantic. US stocks raced higher on Wednesday, pushing both the S&P 500 and the Dow Jones indices to fresh all-time highs. The S&P 500 even passed an intraday record of 1,588.86, beating the previous high of 1,576.09 which was reached in October 2007. International announcements expected today include the German consumer price index, the EU ECB report, and the US important and export price indices. In company news, mining giant Xstrata has announced that its Koniambo Nickel project in New Caledonia has gone into project after producing its first metal this week, a key milestone for the five billion-dollar greenfield project. Xstrata Nickel, the world's fourth-largest nickel producer, is a 49% joint-venture partner in the project which has been under construction for the past six years. It is said to be a "flagship component" of Xstrata's organic growth programme.Salamander Energy has suspended the North Kendang-1 exploration well (NK-1) in its operated South East Sangatta production sharing contract (PSC) as a potential gas discovery. Initial testing on the well indicates a wet gas, while pressure data indicate a 'potentially significant' column height. High Street retailer Marks & Spencer has unveiled a fall in clothing sales in the 13 weeks ended March 30th, compared to a rise in food revenues. General merchandise, which includes clothes and shoes, fell 2.2% on a like-for-like basis as the retailer was gripped by difficult trading conditions. An unseasonably cold March has affected sales of new summer clothing ranges across UK stores. Despite the weather's hit to the M&S division, it fell less than the 6.0% fall analysts at Nomura had predicted.Recruitment company Hays has revealed a decline in quarterly net fees, amid challenging market conditions, and expects conditions to remain fragile. Net fees for the quarter ended March 31st 2013 fell 3.0%. Across its regions, Asia Pacific fell 15% while Continental Europe & Rest of World rose 5.0%. UK & Ireland was unchanged.