FTSE 100 preview: GDP fear knocks shares
The FTSE 100 is seen opening down, reversing the previous session's rally following a late sell-off on Wall Street and weaker showings overnight in Asia.
Reverse: Shares will undo gains from yesterday.
Investors were also expected to be cautious ahead of the second reading of British first-quarter GDP, with the initial quarterly growth rise reported at 0.5%, giving an annualised increase of 1.8%.
First-quarter British preliminary business inventories will also be released at the same time.
The UK blue chip index closed 22.52 points, or 0.4% higher on Tuesday at 5,858.41, bouncing back from sharp falls in the previous session as beaten-down commodity stocks rallied in tandem with metal and oil prices.
US stocks, however, fell back on Tuesday, reversing early gains as lingering concerns about a slowdown in growth, ahead of Thursday's second reading for US first-quarter GDP, more than offset gains in energy shares.
April US durable goods orders for April will be released with the FHFA March home price index, and April building permit figures due later in the session.
Asian equities also fell back on Wednesday, tracking the weakness on Wall Street on concerns over the economic outlook for the United States, as well as euro zone debt woes.
Europe's policy options to avert a Greek debt default appear to be dwindling fast, fueling fears of a chain reaction in other heavily indebted countries in the 17-nation euro area.
A Greek debt default would hurt other peripheral euro zone states and could push Portuguese and Irish debt into junk territory, Moody's said on Tuesday, warning it would classify most forms of restructuring as a default.
'Yesterday's poor session on Wall Street is setting the pace, damaging sentiment in Asia and lining up European markets for a sharply lower open too,' said Chris Weston, Institutional trader at IG Markets.
Ex-dividend factors will knock 1 point exactly off the FTSE 100 index on Wednesday, with Amec, International Power, and Next all losing their payout attractions.
Recently floated Glencore makes its debut in the FTSE 100 index on Wednesday following the start of unconditional trading in the stock on Tuesday, replacing Invensys. Glencore shares made their trading debut in Hong Kong on Wednesday, falling by as much as 3%.
Diageo, the maker of Johnnie Walker scotch and Smirnoff vodka, is in talks to buy tequila brand Jose Cuervo for more than $2bn, Bloomberg reported on Tuesday.
Transocean has had high-level talks with BP about last year's Gulf of Mexico oil well disaster, for which it believes BP is responsible for the damages, an executive said on Tuesday.
There will be results today from C&W Communications, JJB Sports, Shaftesbury, Quintain Estates, Hogg Robinson and Sportingbet.
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