FTSE preview: Gloom over commodities

By REUTERS
Updated:

 

The FTSE 100 is forecast to to shed 7 to 11 points after a rally on Wall Street tailed off before the close.

Traders

Worry: Traders will be digesting export data from China

The blue chip index closed up 47.45 points at 5,856.34 yesterday, boosted by a bounceback by miners and solid gains from integrated oil stocks as crude firmed on supply fears.

But sentiment surrounding commodity stocks looks likely to be soured by downbeat data out of China, revealing a slowing of export growth in May.

'Despite yesterday's gains, traders still remain cautious. Overnight trade data from China showed that exports grew less than expected, a sign which many are likely to interpret as weakening global demand,' said Jonathan Sudaria, a dealer at Capital Spreads.

US blue chips rose on Thursday, but ended off earlier highs. Better than expected US trade data offered investors some cause for optimism, but the prevailing mood was cautious after a run of otherwise gloomy data releases.

In terms of domestic economic data, UK April industrial output figures along with UK May PPI data are due later.

Across the Atlantic, US May import and export prices are scheduled for release.

 

Stocks to watch today include:

GlazoSmithKline: Hong Kong has ordered GlaxoSmithKline to recall a paediatric antibiotic manufactured in France over the presence of a plasticiser in the product, raising safety and quality concerns.

WM Morrison: The food retailer's chief executive Dalton Philips refused to rule the firm out of the £1.5bn race to buy rival Iceland, the Daily Mail said.

Hays: Swiss staffing group Adecco could be lining up a 160p-a-share cash bid for Hays, the Daily Mail's market report said.

Johnson Service Group: Privately-owned shoe repair and key cutting firm Timpsons could be readying a move for Johnson Service Group according to blog rumours, The Guardian's market report said.

Southern Cross: The care home owner is planning to give up control of 132 care homes as part of a financial restructuring package aimed at saving the group, the Financial Times reported, citing documents distributed to landlords.

Bellway: The housebuilder issues a trading update.

Fuller, Smith & Turner: The pubs operator and brewer reports full-year results.

MP Evans Group: The producer of Indonesian palm oil holds its annual general meeting.

Petroceltic International: The oil explorer holds an extraordinary general meeting.

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