London pre-open: Stocks seen higher as Syria concerns recede

11th Sep 2013 07:47

Stocks are expected to edge higher on Wednesday morning as tensions over Syria continue to ease.Markets rose strongly on Tuesday after Syria accepted a Russian proposal to hand over all chemical weapons to international control in an attempt to avoid US military action. In a nationally televised speech last night, US President Barack Obama asked Congress to delay a vote on military intervention in Syria in light of recent diplomatic developments. He said that the Russian initiative "has the potential to remove the threat of chemical weapons without the use of force". City sources predict the FTSE 100 will open up five points from yesterday's close of 6,583.99."While Obama is continuing to push for military action against Assad [...] he will now find it very difficult to get the congressional approval that previously looked likely," said Market Analyst Craig Erlam from Alpari. "Americans, like their counterparts in Britain, are very reluctant to get involved in Syria, with memories of the Iraq war still fresh in people's minds. If a solution exists that involves Assad handing over his chemical weapons to the international community, they're likely to take it." Stocks to watchGlaxoSmithKline (GSK) has announced that the US Food and Drug Administration's Pulmonary-Allergy Drugs Advisory Committee has recommended approval of GSK's latest treatment for chronic obstructive pulmonary disease in the US. The committee voted 11-2 in favour of a recommendation for the UMEC/VI treatment. GSK described the development as "good news".African Barrick Gold's Chief Operating Officer Marco Zolezzi has resigned with immediate effect, the miner announced on Wednesday. Zolezzi, who has been COO since September 2010, is leaving to pursue other interests.First-quarter results at Sports Direct were strong with sales up by nearly a fifth, as the sports retailer reiterated its full-year profit targets. Group sales were up 18.2% in the 13 weeks to July 28th at £613.3m, up 18.2% from £519m the year before. Meanwhile gross profits increased 23.2% from £211.1m to £260.1m.BC