London pre-open: Small retreat expected after Tuesday's record highs

25th Feb 2015 07:49

UK markets were expected to pull back slightly on Wednesday as investors tread cautiously following the new all-time highs reached the previous session.City sources predict the FTSE 100 will open around eight points lower than Tuesday's record close of 6,949.63. The index also reached a new intraday peak of 6,958.89.The rally came on the back of an approval for Greece's four-month bailout extension and relatively dovish comments from Federal Reserve chair Janet Yellen, who said that the central bank would still take a cautious approach to raising rates.Overnight, data revealed that China's manufacturing sector returned to growth this month, with the HSBC purchasing managers' index rising from 49.7 to 50.1, surprising those who had expected a fall to 49.5. A figure above 50 represents expansion.Stocks to watchHospitality group Whitbread said it expects full-year results to come in at the top end of expectations after a strong fourth quarter from its Premier Inn and Costa brands. Sales growth picked up to 14.3% in the 11 weeks to 12 February, from the 13% combined growth seen over the first three quarters. Results were helped by a 19.8% jump in sales at Costa and a 16.5% improvement at Premier Inn.Big Four supermarket chain Wm Morrison has named the former head of Tesco's Asian business as its new chief executive officer. David Potts, who is said to have more than 40 years' experience in grocery retailing, is expected to join the company on 16 March. Potts replaces Dalton Philips who was recently pushed out of the company after five years as sales trends continued to worsen.First-half profits from Barratt Developments were up over 70%, well ahead of expectations, as the housebuilder's disciplined approach to growth paid off in spades. Revenues rose 24.6% to £1.58bn, with profit before tax surging 74.6% to £210.2m and basic earnings per share 78.9% to 17p.Oil field services outfit Petrofac saw full-year 2014 revenues dip to $6.2bn from $6.3bn in the year before. Net profits retreated 11% to reach $581m, settling at the bottom end of the company's previous guidance for between $580m and $600m.Meggitt subsidiary Heatric has won a multi-million pound contract to deliver four printed circuit heat exchangers (PCHEs) by April 2016 ready to commission a demonstration plant in Texas. The NET Power plant is set for delivery in partnership with CB&I, Exelon Generation, Toshiba and 8 Rivers Capital.