London pre-open: Small decline expected in early trade

27th Sep 2013 07:12

City sources predict the FTSE 100 will open down around eight points from Thursday's close of 6,565.59, as investors weigh up the recent raft of data both at home and abroad. Mark Carney, the Bank of England Governor, has reportedly said that he sees no reason to continue bond-buying following signs that the UK economy is on the up, but that if the recovery stalls the bank would consider the option of further quantitative easing. Meanwhile, UK consumer confidence will show an improvement in September, according to consensus ahead of the report's release later today.Market research group GfK's forward-looking consumer sentiment indicator is expected to show an increase to -11 this month compared to -13 in August. The report follows yesterday's UK gross domestic product figures, which confirmed the economy grew by 0.7% in the second quarter.Elsewhere today, Eurozone economic confidence will rise to a reading of 96 in September from 95.2 last month, according to analysts.Separately, figures are anticipated to show that Eurozone industrial confidence climbed to -7 this month from -7.9 the prior month and services confidence increased to -4.6 from -5.3.Germany's consumer price index will also be in focus. It is expected to come in at 1.5% in September on the year, in line with the previous month.Back in the UK, it was revealed this morning that the Royal Mail will be valued at between £2.6bn and £3.3bn. Meanwhile, the North-South housing price gap has, for the first time, widened to more than £100,000, Nationwide has announced. In other news, Chancellor George Osborne has called on the Bank of England to play a bigger part in supporting the government's Help to Buy scheme to ensure it does not bring about a property boom. Company wise, European plastic packaging supplier RPC Group said this morning that it expects revenues to increase on the back of growth across its products and a more favourable sterling to euro exchange rate. In a trading update ahead of its first year results, the company said it anticipates operating profit to be in line with management expectations, driven by the strong performance of products such as coffee capsules and personal care.Engineering group IMI has hired former Weir boss Mark Selway as its new Chief Executive. He will take the reins from company veteran Martin Lamb who will step down at the end of this year after nearly 13 years at the helm. Under his watch the company has trebled its earnings and its market capitalisation has increased by nearly six fold, Chairman Roberto Quarta said.UBM, the global events-led marketing services and communications company, has agreed to sell both its Property Week print magazine and 70% of its North American IT channel, raising a combined total of around £8.5m. The magazine, along with its related products, was sold to Metropolis International, while the channel was taken on by a new management-led investment group, The Channel Company.