London pre-open: Stocks seen flat ahead of FOMC rate announcement

(ShareCast News) - London stocks are expected to open flat on Wednesday as investors adopt a cautious stance ahead of the Federal Open Market Committee rate announcement, which is due after the European close."While no change is expected today the statement will be closely scrutinised for any change of tone with respect to the timing of a rate rise this year. In its last statement the Fed referred to an improving labour market with solid job gains, but since then we've had a poor September payrolls report as well as a downward revision to the August number, raising the prospect of a softening labour market," said Michael Hewson, chief market analyst at CMC Markets."In truth the window for raising rates this year appears to be getting ever smaller and was probably slammed shut last week in Beijing when the People's Bank of China cut rates again for the fifth time this year," he added.SABMiller and AB InBev extend takeover deadlineSABMiller has extended the deadline for Belgium-based Anheuser-Busch InBev to make a formal £65bn takeover offer for the London-listed brewer by a week. SAB said on Wednesday that it has requested the Panel on Takeovers and Mergers extend the relevant deadline until 1700 GMT on 4 November.Third quarter sales at Next were up 6% and the retailer slightly increased its profit guidance for the full year. Steering its way through what is a currently volatile consumer landscape, with a generally strong September flattered by poor comparative weeks last year and some negative weeks, Next said it now expects group profit before tax to be in the range £810m to £845m, from £805m-£845m before.