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London open: Stocks flat after Germany trims growth forecasts

Fri, 07th Dec 2012 08:28

The FTSE 100 opened broadly flat on Friday following two consecutive days of gains after Germany reduced its economic growth expectations for next year."Germany's Bundesbank cutting the country's 2013 GDP forecast [...] has taken the shine off the earlier support provided by firm sessions in Asia and the US overnight," said market strategist Ishaq Siddiqi from ETX Capital. The Bundesbank now expects just 0.4% growth next year, down from its previous prediction in June for a 1.6% expansion."After Thursday's strong German factory orders, these growth forecast downgrades refuel concerns about the prospects of Europe's powerhouse," Siddiqi said.Markets were also showing caution ahead of the crucial US employment report due out at 08:30 in New York (13:30 London time). Consensus estimates are for a 90,000 gain in non-farm payrolls in November, much worse than the 171,000 increase seen in October. Meanwhile, the unemployment rate is expected to remain at 7.9%. However, many factors are expected to have thrown up headwinds over the last month, including: an early Thanksgiving which could have distorted hiring patterns for retailers; the looming 'fiscal cliff' which could hold back recruitment until the New Year; and by no means least, Hurricane Sandy.As for this side of the Pond, UK industrial and manufacturing production figures are due out this morning.Berkeley jumps after strong first halfHouse builder Berkeley Group jumped early on after seeing revenue and profit surge in the first half, as it declared an interim dividend of 15p per share, compared with nil the year before. Revenue increased 69.4% and pre-tax profit rose 40.7% in the six months to October 31st. Panmure Gordon hiked its target price from 1,390p to 1,650p on the back of the results, but retained its 'hold' recommendation, saying that the valuation "looks up with events".Sector peer Bellway edged higher after reporting a 6% rise in reservations to around 100 per week in the 18 weeks ended November 30th, as a result of an improvement to customers' ability to access higher loan-to-value mortgage finance. Sweeteners and food products giant Tate & Lyle was in demand after agreeing to a £347m partial pensioner buy-in which covers nearly half of its total pensioner liabilities. The firm said that the trustee of the its group pension scheme has made the agreement with financial services giant Legal & General about the buy-in which covers around 43% of its commitments, "which effectively hedges these liabilities in full".AIM-listed miner Orosur cheered investors with the news that in the three months ended November 30th production totalled 13,970 ounces meaning the company remains on track to achieve its forecast production target of 63,000 to 68,000 ounces for the full year.Belgravium Technologies, which supplies mobile data computing solutions and managed services to a variety of industrial sectors, dropped after warning that delayed contract orders - which were expected to be received by now - have been further delayed; as a result the group's sales and profit levels for the year are likely to be below market expectation.Instant service equipment group Photo Me rose as it revealed a 17.4% increase in first-half pre-tax profit despite a decline in revenue.FTSE 100 - RisersEvraz (EVR) 242.40p +1.21%Tate & Lyle (TATE) 769.50p +1.12%Diageo (DGE) 1,874.50p +1.11%Centrica (CNA) 334.30p +0.81%Shire Plc (SHP) 1,875.00p +0.59%Capital Shopping Centres Group (CSCG) 350.50p +0.49%British American Tobacco (BATS) 3,266.00p +0.43%SABMiller (SAB) 2,807.50p +0.41%Next (NXT) 3,727.00p +0.40%Imperial Tobacco Group (IMT) 2,495.00p +0.40%FTSE 100 - FallersMarks & Spencer Group (MKS) 390.30p -1.89%Kazakhmys (KAZ) 735.00p -1.01%Standard Chartered (STAN) 1,485.50p -1.00%Capita (CPI) 749.50p -0.99%Hammerson (HMSO) 474.60p -0.67%HSBC Holdings (HSBA) 639.70p -0.64%Tesco (TSCO) 337.45p -0.63%BAE Systems (BA.) 335.70p -0.62%Eurasian Natural Resources Corp. (ENRC) 281.60p -0.60%Aggreko (AGK) 2,236.00p -0.58%FTSE 250 - RisersBerkeley Group Holdings (The) (BKG) 1,751.00p +6.12%Ruspetro (RPO) 86.65p +4.40%Talvivaara Mining Company (TALV) 96.25p +3.38%Centamin (DI) (CEY) 51.40p +2.39%Imagination Technologies Group (IMG) 435.50p +2.11%Go-Ahead Group (GOG) 1,283.00p +1.99%Bank of Georgia Holdings (BGEO) 1,030.00p +1.98%Dunelm Group (DNLM) 638.83p +1.73%Electrocomponents (ECM) 216.40p +1.55%RPS Group (RPS) 208.70p +1.51%FTSE 250 - FallersSavills (SVS) 465.00p -2.19%Fidelity China Special Situations (FCSS) 78.25p -2.07%Petropavlovsk (POG) 325.00p -1.96%African Barrick Gold (ABG) 412.60p -1.53%Synergy Health (SYR) 1,000.00p -1.48%Electra Private Equity (ELTA) 1,870.00p -1.32%Hochschild Mining (HOC) 460.60p -1.22%F&C Asset Management (FCAM) 98.80p -1.20%Ocado Group (OCDO) 73.25p -1.15%Kenmare Resources (KMR) 31.47p -1.10%BC
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