FTSE 100 called lower at the outset
The FTSE 100 is called to open lower this morning with markets again in cautious mood because of the euro zone and the ongoing developments in the Spanish banking system. Reports overnight indicated that the ECB will oppose plans to fund the recapitalisation of Bankia via the central bank's lending facility. In addition, stocks going ex-dividend will take off nearly 5 points from the FTSE 100 today. In terms of economic data, the main focus will be on the US this afternoon with pending home sales. Markets will also be keeping an eye on the outcome of an Italian 10 year bond auction and a speech from the ECB President Draghi (see below). Commodity prices are generally lower amid the ongoing euro zone debt situation with sterling again mixed in trading against both the dollar and the euro.
BG Sale of Philippines Power Plants Interest. It has reached agreement to sell its 40% equity interest in two gas-fired generation plants in the country to its partner, First Gen Corporation for net cash proceeds of USD360m. This is another step to realising BG's planned release of USD5bn of capital in the next 2 years.
AMEC Expansion of Service Offering in Australia. It is to buy Unidel for an initial cash consideration with more to be paid over 3 years subject to profit targets being achieved. According to the company, the acquisition will create 'significant opportunities' to grow and offer a wider range of services to new and existing clients in Australia.
Severn Trent Preliminary Results saw a fall of 4.6% in underlying PBT to GBP275.3m on turnover ahead 3.5% at GBP1.77bn. The total dividend is raised 7.7% to 70.10p and there is to be a proposed capital return of GBP150m to shareholders. It added that it will make a further investment of GBP150m in Severn Trent water networks over the next 3 years on top of the GBP1.6bn previously planned.
STOCK/MARKET: CFDREGION: EuropeCOUNTRY: United Kingdom
CATEGORY: CFDsPUBLISHED: 30 May 12