London pre-open: Stocks to ease after last week's rally

10th Sep 2012 07:28

City sources predict the FTSE 100 will open down 13 points from Friday's close of 5,795, easing back after last week's rally, which was prompted by hopes of more stimulus from the Federal Reserve after key non-farm payrolls data came in below expectations. The Federal Open Market Committee (FOMC) is holding its next meeting on Thursday. Chinese industrial production and import data released over the weekend has come in below economists´ expectations, particularly the latter. Chinese imports fell at a 2.6% year-on-year clip in August (Consensus: 3.5%). Quite significantly as well, the European Comission´s Olli Rehn has indicated that new conditions will not be set for Spain should it ask for aid from the European Central Bank. To be had in account, the country´s main opposition party is now asking for any petition for a rescue of the country to be approved by Parliament. A bullish note by Morgan Stanley this morning on Eurozone equities, especially for the German Dax-30 and the French Cac-40 has received some attention. Primark and Silver Spoon owner Associated British Foods said its adjusted operating profit for the second half of its financial year will be well ahead of a year ago, in line with expectations. Sales at Primark for the full year are now expected to be 17% ahead of last year at constant currency which, with the recent weakening of the euro, will be 15% ahead at actual exchange rates. That represents an improvement on the 11% growth rate (at actual exchange rates) seen in the first 40 weeks of the financial year. Alistair Darby, Chief Operating Officer of Pedigree bitter brewer Marston's, is off on a pub crawl of sorts, moving to rival pubs group Mitchells and Butlers to become Chief Executive. Peter Dalzell, Managing Director of Marston's Inns and Taverns, and Stephen Oliver, Managing Director of Marston's Beer and Pub Company, will now report directly to Ralph Findlay, Marston's Chief Executive Officer.Quality control services group Intertek has acquired NDT Services, a provider of non-destructive testing services to the energy, petrochemical, power and aerospace industries. The group was purchased through the acquisition of its parent company, Materials Testing & Inspection Services, from its management shareholders for £17m in cash.