London pre-open: Stocks to rebound slightly after sell-off

27th May 2015 07:50

UK stocks are expected to edge higher on Wednesday morning after a heavy sell-off the previous session, ahead of a quieter day in terms of economic data.City sources predict the FTSE 100 will open around 12 points higher after falling 1.2% on Tuesday to 6,948.99.Consumer confidence surveys will be released on Wednesday in France and Germany, alongside business confidence data out of Belgium, however the calendar looks sparse compared with a busy session on Tuesday.Mostly better-than-expected economic data from the States spurred a continued rally in the dollar - which started on Friday following higher-than-expected US inflation figures - but had the opposite effect on commodity prices, sending stocks in the heavyweight UK mining and oil sectors firmly lower.As for Wednesday's session, investors will likely be keeping a close eye on the Queen's Speech as she puts forward the government's agenda following the elections."For markets, any announcements on a potential EU membership referendum will likely be the most interesting feature of the speech," said analyst Henry Skeoch from Barclays.Stocks to watchImperial Tobacco has been given the green light by US trade regulators for its $4.7bn asset purchase from the merging Lorillard and Reynolds. The deal, which still must clear some smaller legal hurdles, is expected to complete within weeks.Royal Bank of Scotland has emerged as a bidder for part of Granite, which is a £13bn state-owned mortgage portfolio for sale by the UK government, according to Sky News.Engine maker Rolls-Royce has been selected by the British Army to supply 589 MTU series 199 diesel engines for use in the new SCOUT specialist vehicle. The contract, which represents the first time that the British Army has used engines made by Rolls-Royce's German manufacturing division MTU, is worth around €80m to the parent company.Some of the fizz has gone out of Irn Bru maker AG Barr in the first quarter, with group sales down 1.1% compared to last year's strong start, which was boosted by the Commonwealth Games. But the Glasgow-based company said this return to more normal trading had seen margins hold up well and should precede a return to sales growth in the second half of the financial year, with full year expectations reiterated.Banknote printer De La Rue posted a drop in pre-tax profit to £38.9m for fiscal 2015 from £59.8m, in line with its expectations, amid ongoing pricing pressures.