27th Jul 2015 06:00
LONDON (Alliance News) - London shares are set to open lower Monday, as investors turn their attention to economic data from Germany and the US, while on the UK corporate front there are updates from Reckitt Benckiser, Hiscox and Acacia Mining, among others.
"The German IFO survey will provide further indications of economic activity in the euro area at the start of the third quarter," says Lloyds Bank. "Coming after the expected pickup in the second quarter, recent survey evidence has been mixed."
"Overall, the broad picture of strengthening activity compared with last year still remains intact and we have pencilled in a rise in the headline IFO index to 107.6 from 107.4, firmer than the market consensus of a slight dip to 107.2," writes the bank.
CESifo Group business sentiment survey results from Germany are expected at 0900 BST.
IG says futures indicate the FTSE 100 to open 23 points lower at 6,556.00 points. The index closed down 1.1% at 6,579.81 on Friday.
In Asia on Monday, the Japanese Nikkei 225 trades down 1.2%. In China, the Hang Seng is down 2.6% and the Shanghai Composite is down 3.1%.
Profits earned by Chinese industrial enterprises increased in June, figures from the National Bureau of Statistics showed. Industrial profits rose 0.3% year-over-year to CNY588.57 billion in June following a 0.6% rise in the preceding month.
The agency said the slowdown in industrial profit growth for the month was impacted by a decline in industrial producer prices, higher unit costs and tough comparisons with the year-ago period, when profits surged up 17.9%. During the first six months of the year, total industrial profits declined by 0.7% as compared to the corresponding period last year.
Wall Street ended lower Friday. The DJIA closed down 0.9%, the S&P 500 ended down 1.1% and the Nasdaq Composite finished down 1.1%.
Also in the corporate calendar, Senior and Dialight publish half-year results, while Cranswick issues a first-quarter interim management statement.
Meanwhile, also in the economic calendar, eurozone money supply data is due at 0900 BST. In the afternoon, there are US durable goods orders at 1330 BST.
By Daniel Ruiz; [email protected]
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