FTSE preview: Shares fall; US & UK GDP

By Reuters
Updated: 03:03 EDT, 27 August 2010

The FTSE 100 is seen falling on Friday, retreating after gains in the previous session, as investors awaited GDP releases from both the UK and the United States and a major speech by Federal Reserve Chairman Ben Bernanke.

Friday feeling: Shares are expected to fall this morning.

The UK blue-chip index looks set to shed 17 to 19 points, or as much as 0.4%, according to financial bookmakers, after it closed up 46.44 points, or 0.9%, at 5,155.84 on Thursday.

The Dow closed below 10,000 on Thursday, but on Friday, the MSCI Asia stock index outside Japan was flat. Japan's Nikkei rose 1%, boosted by short-covering after hopes emerged for possible measures from Japanese authorities to stem the yen's rise, though caution remained on whether these would be effective.

In terms of domestic economic data, the second release of second-quarter GDP is due, as are preliminary second-quarter business investment figures.

On the other side of the Atlantic, US second-quarter preliminary GDP is due, the final reading of the August Reuters/University of Michigan consumer sentiment survey is due and Bernanke will speak in Jackson Hole.

Bernanke is likely to signal his views about the uncertain prospects for the world's biggest economy but probably will not offer many clues on whether the US central bank will pump more cash to keep the recovery going.

Two partners of Potash Corp in Canada's fertiliser cartel, Mosaic and Agrium, have launched a campaign defending the industry's pricing in a move that could impede BHP Billiton's $39bn takeover bid for the company, the Financial Times said.

Kazakhmys was considering a second flotation in Hong Kong as it continued to sell 60% of its copper to China, the Financial Times said.

There will be results today from Aegis Group, Computacenter, Dana Petroleum, JKX Oil & Gas, Melrose, Regus, Rightmove, SVG Capital and Davis Service Group.