London pre-open: Stocks seen higher as concerns over Syria intervention ease

10th Sep 2013 07:24

Markets are expected to open firmly higher on Tuesday morning, taking their cue from a strong finish on Wall Street last night, on the back of easing concerns about an imminent US military intervention in Syria. City sources predict the FTSE 100 will open up 32 points from yesterday's close of 6,530.74. US benchmarks rose by an average 1% on Monday after Russian Foreign Minister Sergei Lavrov urged Syria to put stockpiles of chemical weapons under international control and then have them destroyed in an attempt to avoid action from the US. Syrian counterpart Walid Muallem is said to have welcomed the proposal.President Barack Obama then said that he would put air strikes on hold if Bashar al-Assad's government follows the initiative. "Until now, a US-led military response against the Assad regime, for the suspected use of chemical weapons against its own people, looked almost inevitable," said Market Analyst Craig Erlam from Alpari. "However, reports that Syria has welcomed a suggestion by Russia for the government to put its stock of chemical weapons under international control could be a game changer, although at this stage there has not been confirmation that Assad would approve such a move."Stocks to watchRolls-Royce has scored a $175m contract with Asia Gas Pipeline (AGP) for services on a natural gas pipeline in Kazakhstan. The FTSE 100 company will supply Asia Gas Pipeline with equipment and related services to power the flow of natural gas through Kazakhstan's Line C Gas Pipeline, part of the 1,833km long Central Asia-China Gas Pipeline network.British manufacturer of industrial belting products Fenner told investors that following a 'successful end' to its financial year its results are expected to be in line with expectations. It said that its balance sheet remained strong, with net debt levels better-than-expected at around £125m, and a return to growth was still expected to take place in its 2013/14 financial year.Oxford Instruments said the growth in the order intake rate in Industrial Products and third party Service is encouraging however slowness in R&D markets in the Western economies means that the year is likely to be more second half weighted. The group, which provides high tech tools and systems for industry and research, said average monthly orders in its Nanotechnology Tools sector in the current year are ahead of last year in Asia but are behind in North America and Europe as government agencies tighten their spending budgets.BC