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LONDON (Alliance News) - London's main stock index is set to open lower Thursday, as the market focuses on upcoming UK Construction Purchase Managers' Index and US jobless data, while the price of oil has came down overnight after rising when Pemex reported a fire Wednesday on an oil rig in the Gulf of Mexico.

IG says futures indicate the FTSE 100 will open 11.7 points lower at 6,797.8. The index closed up 0.5% at 6,809.50 on Wednesday as investor sentiment was lifted by better-than-expected manufacturing Purchasing Managers' Index readings in the UK and Europe.

Four workers were killed and about 10 were injured in a blast and resulting fire early Wednesday on a Mexican oil rig in the Gulf of Mexico, the state-controlled firm Petroleos Mexicanos (Pemex) said. The injured in the accident, which prompted the evacuation of about 300 workers, were taken to hospitals in Ciudad del Carmen on the Mexican mainland.

Pemex Chief Executive Emilio Lozoya travelled to the area in the Gulf of Mexico to supervise efforts to put out the fire. Navy personnel were assisting Pemex staff in the effort. Pemex said that eight firefighting boats were on hand to fight the fire on the Abkatun rig in the Campeche Sound in south-eastern Mexico.

Brent crude is trading at around USD56.72 a barrel early Thursday, while US benchmark West Texas Intermediate is trading at USD49.64 a barrel. Gold trades early Thursday at USD1,203.45 an ounce.

Wednesday, US crude oil snapped a three-day loss to end over 5% higher on the day, partly thanks to increased demand for gasoline in the US. The US Energy Information Administration weekly report showing a marked decline in gasoline stocks last week. Prices have also been impacted after Iran's nuclear program talks with the West continued to be extended as the sides failed to reach an agreement by Tuesday's deadline.

Economists expect a slight increase in US Initial jobless claims when the data is released at 1330 BST to 285,000, a pre-cursor to the US employment report due out on Good Friday.

"Tomorrow’s US employment report which will be of particular interest after yesterday’s ADP report dropped below 200,000 for the first time since January last year, coming in at 189,000 and well below the 225,000 expected," says CMC Markets Chief Market Analyst Michael Hewson.

Wall Street ended lower Wednesday. The DJIA, the S&P 500 and the Nasdaq Composite all closed down 0.4%.

"Today’s construction PMI data for March is likely to be equally as positive with expectations of a reading of 59.7, the 23rd monthly expansion in a row and down slightly from February’s 60.1," Hewson said of the UK data due to be released at 0930 BST.

In Europe, Greece submitted a new set of economic reforms to European authorities on Wednesday, marking the most comprehensive effort yet taken by the country's newly-elected left-wing government to unlock the EUR7.2 billion in bailout fund it will need to prevent it from going bankrupt, the Financial Times reports.

The 26-page document, seen by the FT, will rely on plans to crack down on tax evasion and fraud in order to raise as much as EUR6 billion this year. The measures include raising EUR875 million from audits of offshore bank transfers and EUR600 million from a new lottery scheme aimed at compelling Greek consumers to demand value-added tax receipts.

In Asia on Thursday, the Japanese Nikkei 225 closed up 1.1%, while the Hang Seng trades up 0.4%. The Shanghai Composite is trading down 0.9%.

In the corporate calendar, there were trading updates from Tate & Lyle, Ferrexpo and Electrocomponents. Marks & Spencer Group and Booker Group issued fourth quarter interim management statements, while Dunelm Group issued a third quarter management statement.

BTG Thursday said it expects its revenue in the financial year that ended on Tuesday to be above the guidance range it had previously provided, and revenue to grow strongly in the year that has just begun. The healthcare company said it now expects revenue for the year to March 31 to be above the previous guidance it gave of GBP345 million to GBP360 million, including revenue from the PneumRx acquisition that was completed in early January. It then expects revenue to grow strongly in the current financial year to between GBP410 million and GBP440 million on a constant currency basis.

Drinks giant Diageo Thursday said it will take full control of United National Breweries' traditional sorghum beer business in South Africa by buying the 50% stake in the business it didn't already own for up to USD36 million. Diageo said it will buy the stake in the company that owns United National Breweries' traditional sorghum beer business in South Africa from Pestello Investments for an initial payment of USD22 million, or about GBP14.8 million, and a potential earn-out payment of up to USD14 million, or about GBP9.4 million.

By Daniel Ruiz; danielruiz@alliancenews.com

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