London pre-open: Stocks seen lower as investors digest Fed statement

London stocks are expected to open lower on Thursday following a downbeat session in the US after the Federal Reserve highlighted the recent market turmoil and said it would keep a close eye on global economic and financial developments.

The FTSE 100 is seen starting 35 points lower than Wednesday’s close at 5,955.

“As with anything where markets are concerned investors appear to have reacted more to what was removed from the statement than to what was actually in it, and interpretations varied on what the minutes were telling the markets, depending on who was asked,” said Michael Hewson, chief market analyst at CMC Markets.

“Maybe that was the intention but what doesn’t seem in any doubt is the Fed is less sure of the economic environment than it was a month ago and therefore that should be interpreted as dovish, as no self-respecting central banker hikes rates in the face of uncertainty.”

On the data front, the first release of fourth quarter UK GDP is at 0930 GMT. In the US, initial jobless claims and durable goods orders are at 1330 GMT, while pending home sales are at 1500 GMT.

Babcock chief executive to retire

Babcock has announced that group chief executive Peter Rogers will retire from the company at the end of August.

Rogers has been leading the company since August 2003, growing it from a small cap business to a FTSE 100 giant.

Marine & Technology division chief executive Archie Bethel will take over as group chief executive at the beginning of September.

He will also take up the role of chief operating officer at the beginning of April to ensure a smooth transition.

One David was out, and another one in at Coca-Cola HBC on Thursday, with the announcement that the company's chairman, George A. David, had stepped down with immediate effect.

The FTSE 100 Coca-Cola bottler said George David would remain on the board until the company's annual general meeting in June, at which point he would retire from the company.

Coca-Cola Hellenic also announced the appointment of its current Vice Chairman, Anastassis G. David, to the role of Chairman until the AGM, at which point he would be proposed for election by shareholders.