London pre-open: Small bounce expected on FTSE ahead of further data

16th Oct 2014 07:45

London-listed stocks are expected to make a modest recovery following sharp losses in Wednesday's session.City sources predict the FTSE 100 will open around 35 points higher than the previous close of 6,211.64.Thursday is set to be another busy day, with investors looking ahead to the weekly jobless claims figure in the US, the Philadelphia Fed manufacturing survey and the final September Eurozone consumer price index (CPI) inflation figure.Michael Hewson, chief market analyst at CMC, said: "Today's weekly jobless claims are expected to reinforce that positive message with a number of 287,000 expected, but yesterday's sharp slowdown in Empire manufacturing for October would appear to suggest that the US manufacturing sector is starting to plateau. "If today's Philadelphia Fed manufacturing survey shows a similar slowdown we can expect those concerns to grow. Expectations are for a small decline in October to 20 from 22.5 in September. Both industrial and manufacturing production data for September are both expected to rise 0.3%."Closer to home, the EU CPI figure is predicted to be confirmed at 0.3%, with a 0.7% rise due to be seen in core prices. Back in the UK, the morning's corporate news was dominated by Abbvie, which has recommended shareholders vote against the $54bn takeover of Shire due to changes in US tax law. "Abbvie and its board of directors made this determination following a detailed consideration of the impact of the US Department of Treasury's unilateral changes to the tax rules," the company said in a statement on Wednesday night.International distribution and outsourcing group Bunzl said group revenue for the third quarter on a constant exchange rate basis increased 6% year-on-year, due to underlying growth of approximately 3% and the positive impact from acquisitions. The group also announced the purchase of Holland-based firm De Ridder Groep.Paper and packaging group Mondi said it traded in line with expectations in the third quarter, though underlying sales were flat on last year and profits were held back by planned maintenance shutdowns. Underlying operating profit in the three months to 30 September totaled €174m, down 10% on the previous quarter. The group said that previously-announced price increases in the key packaging paper markets and lower wood costs were offset by the major annual maintenance closures at its fine paper and container board facilities, which had a €30m adverse impact on the bottom line.