FTSE preview: Egypt hold up to hit shares

By Reuters
Updated:

 

The FTSE 100 is expected to open lower after weakness overnight on Wall Street and in Asia, as uncertainties over the situation in Egypt continued.

City trader traders stock exchange market

Friday feeling: Shares may come under pressure today.

The UK blue chip index closed 32.28 points, or 0.5% lower on Thursday at 6,020.01 as a batch of disappointing corporate results crimped confidence on the outlook, knocking risk-sensitive banks and miners.

On Wall Street, the Dow ended slightly lower, breaking an eight-day rally after network equipment maker Cisco gave a weak outlook. The S&P and Nasdaq wavered in volatile late-day action as Egypt's President Hosni Mubarak said he would not step down immediately.

His speech did little to boost investor hopes of a quick solution to the Egyptian crisis.

Asian stocks fell on Friday and were on course for their biggest weekly loss in nine months, as investors shunned risk on concerns about the pace of policy tightening within the region and the escalating tensions in Egypt.

On the macroeconomic front, British wholesale inflation numbers for January will be released, with PPI input prices seen up 1.2% on the month, after a 3.4% jump in December, and PPI output prices seen up 0.5% in January, the same as in December.

December US international trade figures will be released and the February reading for the University of Michigan consumer sentiment index will be released.

Technical factors remained cautious for the FTSE 100 index. 'The weak close (on Thursday) has put the index in a position to weaken further,' said James A. Hyerczyk, an analyst at Autochartist.

'The key number to watch is 5,997.38 which is last week's close. Finishing under this level will form a weekly closing price reversal that could lead to the start of a two- to three-week correction,' Hyerczyk added.

BP's Russian partners in its TNK-BP joint venture are unable to block full dividend payout as a shareholding agreement enforces the payment, the daily Vedomosti said on Friday, citing sources close to TNK-BP.

Indian state-run Oil and Natural Gas Corp does not think its approval is needed in the $10bn deal between Cairn Energy and Vedanta Resources, the Economic Times reported on Friday, citing an unnamed company official.

Kazakhmys plans to spend $6bn over the next three to four years to upgrade its metal plants and develop energy and mining projects, the company's chairman said on Friday.

MPs have expressed concern about Eurasian Natural Resources's deal to buy an expropriated African copper mine, calling for new rules on transparency in the oil, gas and mining industries, The Daily Telegraph said.

A friendly bid for Canadian exchange operator TMX Group by the London Stock Exchange could bring growth, higher profits and higher-profile listings, but leading shareholders fear political factors could derail the deal.

BAE Systems has lost out on a £500m contract to carry out upgrade work for the Warrior armoured vehicle, The Daily Telegraph said.

There will be an update today from Homeserve and Shaftesbury, while Thomas Cook, and OMG holds AGMs.

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