London pre-open: Modest gains expected on FTSE in early trading

27th Feb 2013 07:29

City sources predict the FTSE 100 will open up 16 points from yesterday's close of 6,270, tracking US stocks which finished in positive territory on Tuesday, bucking the trend seen across Europe, as investors shrugged off the political instability in Italy and focused on comments from Federal Reserve Chairman Ben Bernanke.In a testimony to the Senate Banking Committee in Washington, Bernanke reiterated his earlier stance by defending the central bank's asset purchase programme, saying that it would not create asset-price bubbles. "In the current economic environment, the benefits of asset purchases [...] are clear," he said, adding that QE3 will continue until the job markets "improve substantially. "Inflation is currently subdued, and inflation expectations appear well anchored." Meanwhile, today's UK economic announcements include UK GDP and the Index of services reading, while across the Pond data out includes US pending home sales nd durably goods orders and from the EU we can expect the business climate indicator and the economic sentiment indicator. In UK company news, energy group Centrica said 2012 earnings rose as cold weather during the year pushed up demand for gas consumption. Adjusted earnings climbed 5.0% to £1.4bn, or 27.1p per share, for the year to December 31st 2012 as domestic gas consumption increased 12%. Revenues also grew 5.0% to £23.9bn, while total adjusted operating profit jumped 14% to £2.7bn. Profit before taxation rose 26 per cent in the year ending December 31st at FTSE 250-listed company Carillon. In its annual results for the year, the group reported that pre-tax profit has jumped to £179.5m from £142.8m one year earlier.Defence technology group Chemring has said revenue in the three months ended January 31st was hit by weaker performances in Countermeasures and Munitions, which offset the improved trading performances in Pyrotechnics and Counter-IED. Revenue for the period fell to £136.1m, compared to £132.4m in the prior year.