LONDON (AFX) - Leading shares are tipped to open a shortened trading session lower, mirroring a weak close on Wall Street, with Royal Dutch Shell in focus after the Russian government effectively took control of its Sakhalin-2 project, dealers said.
According to CMC Markets, the FTSE 100 is seen opening the last day of trading before Christmas down 16 points at around 6,168, after closing yesterday 14.9 easier at 6,183.7.
Meanwhile, Wall Street fell back last night after economic data pointed to weakness in regional manufacturing and a slowing US economy.
The Philadelphia Federal Reserve's December business index, which gauges regional manufacturing activity, came in at a negative 4.3 compared with a positive reading of 5.1 in November -- its weakest showing since 2003.
The DJIA lost 42.62 to 12,421.25, the S&P 500 slipped 5.22 to 1,418.31, and the Nasdaq ended down 11.76 to 2,415.85.
And today investors will scrutinise a flurry of data including Michigan consumer sentiment and durable goods orders but all these will be released after the London market closes at 12.30pm.
Meanwhile, over in Asia, the Nikkei 225 index closed up 57.13 at 17,104.96 while the Hang Seng was 50.86 higher at 19,273.70 by midday.
And still in Asia, oil prices treaded water above 62 usd a barrel with investors reluctant to take positions ahead of the Christmas holiday.
Back in London, Royal Dutch Shell could come under pressure after the oil giant said the sale of its 50 pct stake in Sakhalin-2 oil and gas project in Russia will hit reserves.
A spokesman was quoted as saying: 'The change will affect our reserve position and probably also our future production outlook.'
In M&A, brewing giant SABMiller could buy Indian spirits group Mount Shivalik Group, the Economic Times said.
And First Choice Holidays is mulling a bid for on-line hotel booking site LateRooms.com for up to 110 mln stg, the Daily Telegraph said.
On a threadbare corporate diary, interim results are due from Sirius Exploration with Premier Foods set to update investors on current trading. newsdesk@afxnews.com tfn-lon-rn/nes COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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