London pre-open: Moderate gains expected

11th Nov 2011 07:17

The Footsie is expected to open up moderately higher following on from moderate gains seen on Wall Street last night and in Asian markets this morning.City sources predict that the FTSE 100 will open up around 38 points from yesterday's close of 5,445.The blue chip index is looking for a quick correction of the moderate losses seen the day before on the back of rumours of an apparent downgrade by S&P of French sovereign debt. It was later announced that this was due to a "technical error" and that the nation's AAA rating was safe and sound.Meanwhile, news of a new national unity government in Italy and the announcement of a new Greek prime minister has calmed fears slightly elsewhere in the Eurozone.Power systems giant Rolls-Royce has assured investors that trading since the end of the first half has been in line with the guidance given in July - double digit growth in engine deliveries in all sectors and between 20% and 25% growth in group profit. The firm said it has seen "encouraging" order flow from a broad range of global customers. "Since the half year we have achieved some important milestones and continued to lay firm foundations for future growth," said chief executive John Rishton.Energy firm Centrica has acquired Illinois-based home protection company Home Warranty of America for $48m (£30m) in cash through its US subsidiary Direct Energy. "The acquisition of HWA provides Direct Energy with a national platform to build and grow an extensive protection plan business in the US," the statement said. Galliford Try has seen strong growth of 38% in Housebuilding sales reserved, contracted or completed in the first half so far following an "encouraging autumn selling season", but its other division - Construction - has seen its order book fall from £1.75bn to £1.6bn (as expected) due to the decline in public sector opportunities.BC