FTSE 100 preview: Shares up ahead of inflation news

By Reuters
Updated: 02:57 EDT, 11 November 2009

The FTSE 100 is seen opening higher on Wednesday according to financial bookmakers, reversing the previous session's losses, while investors await a key inflation report from the Bank of England.

Watching brief: Eyes will be on economic data.

A rise in Asian stocks, after data showed China's factory output jumped to a 19-month high in October, is seen helping sustain some positive sentiment on the FTSE 100 but gains on the index are expected to be muted following weakness on Wall Street overnight.

The FTSE 100 closed 0.1% lower on Tuesday, ending a four-session winning run, as weakness in miners offset strength in banks after a strong update from HSBC.

On the economic front, focus is likely to be on the Bank of England's quarterly Inflation Report, which will contain the central bank's latest growth and inflation forecasts.

Analysts will be looking for clues on the role played by these in its decision to extend its quantitative easing programme by £25bn this month.

Some labour market statistics are also set for release later in the session, with British claimant count unemployment for October and the ILO jobless rate for September both due.

GlaxoSmithKline has won US marketing approval to sell an unadjuvanted H1N1 swine vaccine, allowing it to ship relatively modest amounts of scarce vaccine to the United States next month.

Astazeneca's board will consider in January whether to reintroduce share buybacks after 'an unusually good year' in 2009, during which it has slashed debt, the drugmaker's chief executive said on Tuesday.

National Express is expected to launch its rights issue on Wednesday of between £370m and £375m, the Financial Times reported.

Royal Dutch Shell's CEO Peter Voser said on Wednesday, investments in global projects in 2010 will fall to $28bn from $30-$32bn this year due to lower prices in the market.

Deliveries of an alternate F-35 fighter engine being built by General Electric and Rolls-Royce will be delayed by one year, a source familiar with the program said on Tuesday.

British retailers are preparing themselves for another promotion-led Christmas trading period, according to a survey published by the New West End Company, which represents retailers in London's West End.

There will be first half results from Sainsbury and Scottish and Southern Energy, and updates from Tullow Oil, International Power, Balfour Beatty and Great Portland Estates.