Modest gains expected on FTSE despite strong finish in Asia

17th Feb 2014 07:20

City sources predict the FTSE 100 will open five points higher than Friday's close of 6,663.62, largely ignoring fairly strong gains in Asia overnight and a strong finish to last week across the Pond.US stocks closed higher on Friday with benchmarks registering their best weekly performances of the year so far after a fall in industrial production was outweighed by a better-than-expected reading of consumer sentiment. In celebration of Presidents' Day, both US stock and bond markets will be closed today. Stocks were broadly in positive territory in Asia this morning, particularly in Hong Kong, however the situation was more volatile on the Nikkei-225 after data showed Japan's economy grew less than expected in the final three months of 2013, with Gross Domestic Product up an annualised 1%, below expectations of 2.8%. Back in the UK, figures out from Rightmove over the weekend revealed that the average asking price for a house has surpassed the 1% stamp duty threshold of £250,000 in England and Wales. At £251,964, it is now in the 3% bracket, and marks the highest year-on-year increase since 2007. Elsewhere, scandal-hit Co-operative Group has announced plans to conduct a national survey on its future to seek public opinion on the 150-year-old company. In other corporate news, outsourcing giant Capita has signed a framework contract to deliver the Scottish Wide Area Network (SWAN), a single network that has been set up to connect all public service organisations within Scotland. The agreement is worth up to £325m over a nine-year period. Property group Hammerson reported a rise in annual profits, driven by strong demand for retail property. Pre-tax profit for the year ended December 31st 2013 came to £341.2m, up from £142.2m the previous year, as like-for-like net rental income climbed 2.1% to £282.8m.Fidessa Group, which provides software and trading systems to the financial services sector, posted an increase in 2013 profits as market conditions improved. The company reported a 3% year-on-year rise in pre-tax profit to £43.1m. However, revenue was flat at £279m due to a reduction in consultancy earnings.Meanwhile, holders of shares in Intercontinental Hotels Group may want to extend their stay, the Sunday Times's Danny Fortson said yesterday. In his 'Inside the City' column, Fortson said the owner of Holiday Inn and Crowne Plaza has returned more than $9bn to shareholders since it was de-merged from Bass in 1993, and another payday for investors could be announced on February 20th after the sale of the Barclay Hotel in New York.NR