London pre-open: Slight recovery expected

5th May 2010 07:36

Footsie is expected to edge up by a whisker following yesterday's sell off.Next expects profits this year to be at the top end of market forecasts after sales in the first three months to April were strong, though it is still very cautious on the outlook for consumer spending. "Our internal profit before tax forecasts are towards the top end of the range of current City forecasts, most of which fall between £525m and £565m", it said.Insurer Legal & General increased sales by 2% during the first quarter and by 18% over the previous three months and says it's on track to deliver £600m of cash in 2010. Worldwide new business on an annual premium equivalent (APE) basis rose to £388m in the three months to 31 March from £382m a year earlier and £330m in the fourth quarter of 2009.Miner Xstrata saw higher production in all of its main commodity businesses in the first three months of 2010. Ferrochrome production rose by more than 300%, coal production increased by 9% to 21.7m tonnes and mined copper production was 3% higher.Budget pub chain JD Wetherspoon is slightly more cautious about the consumer outlook after seeing a 0.8% dip in like-for-like sales in the 13 weeks to April 25. That was sharper than the 0.2% fall in sales seen over the 39 weeks to 25 April. Total sales were up by 3.6% during the 13-week period, short of the 4% rise over the 39 weeks.