FTSE 100 called lower at the outset
The FTSE 100 is called to open lower this morning following the declines overnight in Asia with the news that Fitch had downgraded Spain's credit rating by three notches to BBB and kept the country on a negative outlook. Fitch also repeated its warning to downgrade the US next year and followed the Federal Reserve Chairman's comments on the need to tackle the US deficit. However, Ben Bernanke provided no further hint towards stimulus in his speech yesterday. In terms of economic data out today, the domestic focus will be on the latest PPI figures and these will be followed at lunchtime in the US with its trade balance numbers. Commodity prices are generally lower on this lack of guidance from the US on economic policy which offset the surprise cut yesterday in the Chinese benchmark interest rate and better than expected GDP growth data from Japan overnight. Sterling and the euro are both lower against the dollar but range bound.
Rolls-Royce Acquisition. It is to acquire the remaining 50% of shares it does not already own in Aero Engine Controls, a JV with Goodrich Corporation for an undisclosed amount.
Bellway IMS reports that demand throughout the spring selling season has remained resilient with operating margins continuing to improve as it focuses on cost control and replenishing its land bank with new sites. It added that assuming consumer demand and the availability of affordable mortgage finance remains unchanged, its capacity to grow geographically combined with a strong Balance Sheet means that it is well-positioned to continue its three pronged strategy of increasing volume, average selling price and operating margin.
STOCK/MARKET: CFDREGION: EuropeCOUNTRY: United Kingdom
CATEGORY: CFDsPUBLISHED: 08 Jun 12