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FTSE 100 set for lower open as Asian stocks fall, commodities decline

15th Mar 2010, 7:47 am FTSE 100 set for lower open as Asian stocks fall, commodities decline

The FTSE 100 is seen 0.1% lower after Asian shares showed weakness today following Friday’s flat finish on Wall Street.

In the US, the Dow Jones Industrial Average added 0.1%, while the broader S&P 500 index and the technology heavy NASDAQ composite were flat.

The FTSE 100 was initially projected to post a small gain in early trade, however, the futures for the index moved down to track declined in Asian markets, most of which slipped into the red today. Hong Kong’s Hang Seng and Australia’s S&P/ASX 200 dropped 0.7%, China’s Shanghai Composite Index retreated 1.2%, South Korea’s KOSPI was down 0.8% and Japan’s benchmark Nikkei 225 index was flat.

In the UK, broadcaster BSkyB (LSE: BSY) and Royal Bank of Scotland (LSE: RBS) led the blue chip with gains of 5% on Friday. Miner Eurasian Natural Resources (LSE: ENRC) followed, climbing 4.5%.

Insurance focused investor Resolution (LSE: RSL), bank HSBC (LSE: HSBA) and insurer Standard Life (LSE: SL) were at the bottom of the pile with losses of about 1.5%.

Commodities

Oil prices moved slightly lower on Monday. May Brent Crude declined to US$79.72/barrel, while US light, sweet crude slid to US$80.98/barrel.

Precious metals were mixed. Gold rose to US$1,104/oz, while silver and platinum dropped to US$17.06/oz and US$1,603/oz respectively.

Base metals were flat. Copper and zinc held steady at US$3.36/lb and US$1.04/lb, while nickel inched lower to US$9.84/lb.

This week is going to be quiet in terms of corporate results, however investors will have a flurry of economic data to digest, which will include inflation numbers for the EU, UK and the US and Bank of England interest rate minutes.

Monday’s economic updates will include Empire State Manufacturing Survey and US industrial production as well as Japan’s consumer confidence data. Textile maintenance services provider Davis Service Group (LSE: DVSG) is set to release its final report today.

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