London pre-open: Steep losses expected on FTSE ahead of quiet session

13th Oct 2014 07:43

London's blue chips are set to start the week on the back foot, tracking a poor performance in Asia overnight as investors grow increasingly concerned about global growth.Ahead of what is expected to be quiet day for UK markets, City sources predict the FTSE 100 will open around 65 points lower than Friday's close of 6,339.97.Some positive data out of China appeared to have little affect on sentiment in Asia, with markets firmly in the red despite a 15% increase in exports and a 7% rise in imports, ahead of expectations."With everything looking so quiet on Monday, traders will naturally look ahead to the rest of the week for the big events," said Alpari UK market analyst James Hughes."Tuesday and Wednesday will undoubtedly take centre stage as consumer price index inflation readings in the UK and Eurozone are released on Tuesday and Wednesday sees the UK unemployment figure."Both of these sets of readings are important for both central banks, of course Mario Draghi and the European Central Bank have been fighting the war against ultra low inflation and the fear of deflation for almost two years now, however the numbers shows no sign of improvement."US bond markets will be closed on Monday to mark Columbus Day, but their equity brethren will remain open for trading.Here in the UK, Smith & Nephew has revealed revealed a phase-three study on its living cell spray-on therapy had failed to meet its primary endpoint. The treatment is designed to work with the body's own cells to stimulate healing of venous leg ulcers, but failed to result in a statistically significant improvement in healing over a placebo."While this is an unexpected and disappointing development with this one product, we remain excited by the prospects for advanced wound bioactives as unique treatments for unmet patient needs," the group said.Manufacturing conglomerate Melrose is to offload its industrial cable, ties and wire making division Bridon to a Canadian pension fund for £365m and said it would use the proceeds to pay down debt and finance a capital return. Bridon, acquired by Melrose through the takeover of engineering group FKI in 2008, will be sold to the Ontario Teachers' Pension Plan (OTPP) on a debt- and cash-free basis.