LONDON (ShareCast) - City sources predict the FTSE 100 will open up 28 points from yesterday's close of 6,228, boosted by positive data out overnight from China, which showed both imports and exports in January had been above expectations.
"These data suggest that external and domestic demand are both strong, which supports our view that the economy is on track for a cyclical recovery in H1," say analysts at Nomura.
This turned investors' attention away from the moderate losses seen in the US overnight, with cyclical stocks bearing the brunt of the selling on the back of mixed economic data and concerns over Europe.
Comments from European Central Bank (ECB) President Mario Draghi had been weighing on market sentiment last night. Speaking after the ECB kept hold of rates at its policy meeting, Draghi said that the recent rise in the euro could post a threat to the inflation outlook and hamper the recovery across the continent.
On today's agenda are the following: the German balance of trade, the US balance of trade, German factory orders and US wholesale inventories. Yet the most interesting tid-bit of data out there could turn out to be the UK construction figures scheduled for release at 09:30.
In UK company news, water provider Severn Trent has sold its Analytical Services division to Australian testing inspection and certification (TIC) group ALS Limited for an undisclosed sum. The unit, also known as Severn Trent Laboratories, provides portable, wastewater and contaminated land testing services to UK commercial and utility customers.
Imagination Technologies Group has completed the acquisition of the operating business and certain patent properties of MIPS Technologies, a provider of architectures and IP cores. The cash consideration of $100m was paid on completion, financed from Imagination's existing cash resources and a new acquisition facility.
FTSE 250 real estate investment trust Shaftesbury said it has seen continuing good demand and letting activity across its West-End villages in the first half, while vacant space is now at an 'exceptionally low level'.
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