FTSE preview: Shares lower as China slows

 

The FTSE 100 index is seen opening down after gains in the previous session, in-line with weakness in Asia following mixed Chinese data and a rise by the dollar.

Dealers monitor their screens on the trading floor of IG Index in London

Watching brief: Markets will digest the spending review.

The UK blue chip index closed up 25.04 points, or 0.4% on Wednesday at 5,728.93 buoyed by rallying miners on firmer metal prices, with investor sentiment also helped by positive corporate earnings from the United States.

US stocks ended higher on Wednesday with airline issues lifted by strong earnings, but Asian equities were weaker on Thursday as the dollar jumped after US Treasury Secretary Tim Geithner suggested, in an interview published in the Wall Street Journal, that major currencies were roughly in alignment.

Investors also digested data showing China's growth ebbed in the third quarter even as inflation edged higher.

British September retail sales numbers will be released with economists expecting a consensus monthly gain of 0.4%, after a 0.5% decline in August, giving a year-on-year rise of 1.0%, up from a 0.4% gain in the previous month.

After the Fed beige book, released after the London close on Wednesday, investors will look to the latest weekly US jobless claims numbers, together with September lead indicators and October's Philly Fed index to give fresh pointers as to the health of the world's biggest economy on Thursday.

Another batch of US corporate earnings will also attract attention.

Financial services group American Express, drugmaker Eli Lilly, industrial equipment firm Caterpillar, and tobacco firm Philip Morris are likely to be the main interest ahead of the Wall Street open, with online retailer Amazon set to report after the US closing bell.

US environmental groups filed a suit on Wednesday against BP saying the world's worst offshore spill inflicted 'ongoing unlawful' harm on endangered wildlife in the Gulf of Mexico. Vodafone has warned India it may scale back investment in the country if the company loses its appeal over a $2.7bn tax bill, The Daily Telegraph said.

Shares of IRC Ltd, the iron ore unit of London-listed Petropavlovsk were indicated to open 1.1% lower ahead of their Hong Kong trading debut on Thursday, following a $242m IPO.

Talk Talk is to build a special telecoms network that will transmit its TV service as it speeds up plans for a platform that could enable it to compete with rivals BT and BSkyB, The Financial Times said.

There will be results today from GlaxoSmithKline, Anglo American, BHP Billiton, Petrofac, Debenhams, Henderson Group, Inchape, Britvic, Colt Group, Luminar Smiths News, Manganese Bronze, Thorntons and Sceptre Leisure.