Stocks are set to drift lower at the outset as the market absorbs yesterday's gloomy report from the Bank of England. City sources predict the FTSE 100 will open down 24 points from yesterday's close of 5,509.
Centrica, which trades under the British Gas brand, warned that full-year earnings will be a bit lower than the market is expecting, due to the unusually warm weather experienced in recent months. "Subject to weather conditions for the remainder of the year, we continue to expect growth in full year earnings, despite significantly lower margins in our downstream residential business than in 2010," the group said.
Outsourcing colossus Serco said the outcome for the current financial year should be in line with expectations, despite continuing headwinds in the UK and US. "While short-term headwinds remain, particularly those facing the US federal contracting industry, longer term developments in our markets and our strong positions are all encouraging factors. This underpins our confidence that the portfolio will sustain growth well into the future," said Serco's chief executive, Christopher Hyman.
Engineering and project management services firm AMEC was another company saying trading is in line with expectations despite current macro-economic uncertainty. The oil & gas and mining sectors have been keeping the company busy, and the order book remains strong at £3.3bn at the end of October, up from £3.1bn a year earlier but down from £3.4bn at the end of June 2011.
Mining stocks were under pressure as commodity prices declined with precious metals peers Fresnillo and Randgold tracking gold and silver lower early on. As well, in a research note issued today analysts at Citi wrote that: "We remain underweight the gold and base metals stocks and our least favoured name among the large-cap miners is Anglo American." Acting as a backdrop, November manufacturing sector purchasing managers“ survey results in China, the Eurozone and the US all [Mon 15:42]
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.