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FTSE 100 off to a slow start

Last updated: 17:30 10 Jun 2016 AEST, First published: 15:59 10 Jun 2016 AEST

London skyline at dawn ahead of the market's opening.

Spreadbetters see FTSE 100 lower - 6:49am

The FTSE 100 is expected to open the last session of the trading week in the doldrums amid growing concerns over the economic health of the world economy.

The spread betting firms are predicting the index of blue chip shares will drop around 10 points to 6,221.89.

Markets were a little spooked Thursday by European Central Bank chief Mario Draghi rather downbeat assessment of prospects.

Added to that, the latest batch of economic data from China could best be described as indifferent.

“After a decent start to the week European equity markets stumbled badly yesterday, losing most of their gains for this week and selling off sharply, as economic uncertainty about future growth prospects continued to grow amongst some pretty high profile investors,” said CMC Markets analyst Michael Hewson.

Asia’s main markets were all in the red with the Nikkei 225 off 0.8%, driven lower by exporters and the ASX down 1% as commodity prices drifted.

We saw a rather lacklustre end to trading on Wall Street with the Dow Jones off around 0.1%, with the technology-led NASDAQ flat.

*Brent down 11 cents at US$51.84 a barrel.

*Gold down 90 cents at US$1,269 an ounce.

City Pages

*Nearly 8,000 jobs have been lost from the North Sea oil and gas industry during the downturn, according to the industry body, while 120,000 roles have gone across the wider economy – FT,

*Michael Sherwood, a senior Goldman Sachs Executive and confidant of retail tycoon Sir Philip Green, is to be called before a broadening parliamentary investigation into the failure of the retail chain BHS – FT.

*Time Out, publisher of city guides from New York to Beijing, has raised £90mln ahead of a listing on London’s junior stock market, as it embarks on an ambitious growth plan – FT.

*Tata Steel has pushed back to July the timetable for making a final decision on the future of its UK steel operations, as the company haggles over more government concessions to persuade it to retain the business – FT.

*Government borrowing costs dropped to an all-time low while negative interest rates in Europe left banks considering the extraordinary step of hoarding banknotes to avoid central bank charges – Times.

*Britain is the world’s most vulnerable state on a key measure of short-term debt and credit markets might suddenly seize up if voters opt for Brexit, Standard & Poor’s has warned = Telegraph.

*Lady Green, the wife of Sir Philip Green, enjoyed a £53m;n windfall after the sale of BHS’s headquarters to Arcadia, the retail business controlled by the couple – Guardian.

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