London pre-open: Flat start for FTSE expected after sell-off

LONDON (ShareCast) - London's blue chips were set for a subdued start on Friday as investors pause for breath following a sell-off the previous session. City sources predict the FTSE 100 will open broadly flat on Thursday's close of 6,895.33 after dropping 1.4%.

The index has fallen for the last three sessions after hitting a new record closing high of 7,037.67 on Monday.

Analyst Craig Erlam from Oanda said markets were showing caution towards the end of the first quarter and ahead of the next earnings season.

"I think we've seen a lot of profit taking this week, some balancing of the books and basically, preparation for the weeks ahead which could be quite rocky if earnings are as weak as is widely anticipated," he said.

Inflation data from Japan overnight also failed to buoy sentiment as the core consumer price index fell to 2%. Stripping out the effect of last April's sales tax increase, inflation dropped to just 0%.

Stocks to watch Copper mining group Antofagasta (Other OTC: ANFGF - news) has been forced to call a halt to mining activities in the north of Chile due to heavy rain. Since Tuesday evening, flash floods in the Atacama Desert in the north of Chile have wreaked havoc across the region, where Antofagasta's Centinela, Antucoya and Michilla mines are located. The group is currently assessing the impact of the rain on operations but said things should return to normal "as soon as the situation improves".

Barratt Developments (LSE: BDEV.L - news) chief executive Mark Clare has stepped down after nine years in the role, to be replaced by finance director David Thomas. Clare will leave the company on 1 July, leaving the group in fine fettle, with recent interim profits up by over 70%, well ahead of expectations.

London interdealer broker ICAP (LSE: IAP.L - news) is rumoured to be looking to spin off its electronic trading arm EBS-BrokerTec. The FTSE 250 company's management have been mulling the split and, according to sources cited by Bloomberg, have recently discussed the separation with clients and potential advisers.

Vodafone has teamed up with the Botswana Telecommunications Corporation (BTCL) to unveil a new partner market agreement for Botswana. In the agreements, BTCL will become Vodafone's preferred partner in Botswana and the companies will jointly offer new products and services in the region.