London pre-open: Stocks to rise ahead of consumer confidence data, GDP

20th Dec 2013 07:46

Market sources predict the FTSE 100 will open nine points up from yesterday's close of 6584.70 ahead of the release of UK consumer confidence and economic growth figures.GfK's consumer confidence is expected to rise modestly in December to -11 from -12 in November.The final estimate of UK gross domestic product (GDP) report is anticipated to confirm that the economy grew by 1.5% in the third quarter. Later in the US, GDP data may confirm a 3.6% annualised expansion in the third quarter.It comes two days after the Federal Reserve announced a tapering of its monetary stimulus and said it would continue to gradually introduce further reductions if data points to further recovery in the world's biggest economy.Meanwhile, the Bank of England has warned that an increase in interest rates before wages pick up would hurt heavily indebted homeowners, according to the central bank's Quarterly Bulletin. It comes amid speculation that borrowing costs may rise as the unemployment rate falls sooner than expected and the housing market improves. On the company front, Hammerson and Aviva Investors are selling its joint venture Queensgate Shopping Centre in Peterborough to Invesco Real Estate for £202m. Net passing rent for Queensgate is currently £13m and the disposal is expected to be completed in early 2014. The transaction is marginally below Hammerson's book value at June 2013.Rentokil Initial has agreed to buy the pest control division of Green Compliance for £4m in cash.The transaction includes a £3.25m in initial consideration with a further £0.75m payable over 12 months in line with normal contractual protections and the achievement of certain operational targets. Advertising and media giant WPP is set to snap up the business and assets of Media Arts System and Services Company (MASSCOM), a Philippines-based media agency that works closely with Unilever. The company will become part of WPP's global media agency network, Mindshare.RD