London pre-open: Stocks to track US equities lower

2nd May 2013 07:27

City sources predict the FTSE 100 will open down 16 points from yesterday's close of 6,451, tracking US stocks into the red on the back of a slowdown in payroll growth and manufacturing activity stateside. Also in the US, the Federal Reserve kept its $85bn-a-month asset purchase programme unchanged last night, but said that it was willing to increase it as it shifted to a more neutral stance on its next move.On today's agenda is PMI construction data, US productivity, the US balance of trade, EU PMI manufacturing and the European Central Bank (ECB) interest rate reading. The ECB looks set to cut the refinancing rate at today's highly anticipated council meeting, following a stream of disappointing economic data.Policymakers and investors have been waiting with baited breath for the bank's decision on interest rates. Easing price pressures and weak economic figures have sparked hopes for a 25 basis-point cut in the ECB's key lending rating at its get-together. At the last council meeting in April, the ECB said it was ready to act after delivering a downbeat outlook on euro-area recovery. Since the announcement, most survey data have pointed to an ongoing recession and need for the ECB to take action. In UK company news, FTSE 100-listed insurance giant RSA reported an 'encouraging' start to 2013 and said that it remains on track to hit its full-year targets after a good first quarter. Reported net written premiums increased by 7.0% in the first three months of 2013 from £2.27bn to £2.43bn, up 5.0% on a constant currency basis.Galliford Try has been appointed by RED Property Services to construct the £13.3m Old Trafford Supporters Club hotel, opposite the Manchester United football ground. The group also announced that it has concluded an agreement with The Carlyle Group and its joint venture partners Nikal and Abstract Securities to build the second stage of the Soapworks project in a deal with £12.5m. Finally, Muse Developments has signed a £10.75m contract with Galliford to deliver the sixth phase of the Smithfield residential project in Salford.Randgold Resources reported a fall in first quarter profits following a decline in sales, production and the price of gold. Profit for the first three months of the year came to $81.6m, down from the previous quarter's $143m and last year's $104m.