13th Oct 2014 06:32
LONDON (Alliance News) - UK stocks are set Monday to continue their slide from last week, following a weak Asian trading session and amid some further concerns about the state of the European economy.
Futures indicate the FTSE 100 to open 60 points lower at 6280.4. The index closed at 6,339.97 on Friday
China's trade surplus decreased by more than expected in September as both exports and imports growth exceeded expectations, data from the General Administration of Customs showed. The trade surplus came in at USD31 billion, which was less than the USD41.41 billion expected by the economists. In August, a surplus of USD49.8 billion was recorded.
Asian stock markets are lower, with the Hang Seng trading down 0.6% and the Shanghai Composite down 0.7%. The Japanese Nikkei is closed for the Health-Sports Day holiday.
US had a poor trading session on Friday, with the DJIA closing down 0.7%, the S&P 500 down 1.2% and the Nasdaq Composite down 1.8%.
There have been reports that ratings agency Standard & Poor's has downgraded France from stable to negative, which will further lower investor sentiment on the region after a series of poor economic data reports from the eurozone, and from Germany in particular.
"Standard and Poor?s cited the lack of fiscal space and a stagnating economy, and stated that they thought it unlikely that France would be able to hit its 2017 3% budget target," says Michael Hewson, chief market analyst at CMC Markets. "The news isn?t likely to get any better for France this week when they are expected to get a less-than-enthusiastic reception from their European neighbours at today and tomorrow?s Ecofin meeting, with the prospect that the European Union could reject the draft budget agreed by French ministers earlier this month and demand a new one."
Medical devices maker Smith & Nephew said a Phase III study in North America into developmental venous leg ulcer treatment HP802-247 failed to meet its primary endpoint, and there was no statistically significant improvement in healing compared with a placebo. In a statement, the company said it will now full analyse the efficacy data and study methodology, while a second Phase III study in the EU, which is expected to report in 2016, will continue while the analysis is completed.
FTSE 250 plastics and fibre products company Essentra said, in an interim management statement, that third quarter like-for-like revenue is up 7% from the same period in 2013. Chief Executive Colin Day said the company has made good progress with the integration of recent acquisitions and is well positioned for the next phase of its development, which will be revealed at the company's Capital Markets Day on November 20.
The economic calendar for the rest of Monday is very quiet, with the US celebrating Columbus Day, meaning no economic releases from the country. Investors are likely to be already looking ahead to Tuesday's consumer price inflation data from the UK.
By Neil Thakrar; [email protected]
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