London shares outlook - higher as NY closes off lows, earnings news focus

03.04.08, 1:59 AM ET

LONDON (Thomson Financial) - Leading shares look set to open higher as Wall Street closed overnight off lows with earnings news a likely focus as Admiral Group and Schroders report in the blue chips.

Spread bettors IG Index expect the FTSE 100 index to open up 23 points at 5,843 after closing off 65.7 points at 5,818.6.

Overnight in the US, Wall Street closed narrowly mixed after initially falling in early trade as investors wrestled with record-high commodities prices and data that pointed to a continually weakening economy.

The Dow Jones industrial average -- after slumping more than 100 points briefly during afternoon trading -- finished down 7.49 points to 12,258.90.

Separately, the Standard & Poor's 500 index rose 0.71 points to 1,331.34, while the Nasdaq composite index fell 12.88 to 2,258.60.

Stock markets across Asia were mixed following the lackluster session on Wall Street, the Nikkei 225 index closed up 0.10 points at 12,992.28, while the Hang Seng index was down 155.89 points at 23,429.08.

Elsewhere, oil prices edged higher in Asian trade as traders focused on the weak US dollar and news that OPEC would keep output steady.

New York's main contract, light sweet crude for delivery in April, gained 18 cents to 102.63 usd a barrel from 102.45 usd in New York on Monday.

London's Brent North Sea crude for April delivery rose 22 cents to 100.70 usd a barrel.

Turning to the blue chips, UK motor insurer Admiral Group may be in the spotlight today as it is expected to report a 17 pct increase in full-year profit today, buoyed by steady growth in customer numbers thanks to competitive pricing.

Admiral, which sells motor insurance direct to consumers through the

Admiral, Bell, Diamond and Elephant.co.uk brands, will deliver a 2007 pretax

profit of 172.4 mln stg, up from 147.3 mln in the previous year, according to an

average analyst forecast supplied by the company.

Elsewhere, fund management groups maybe a focus with Schroders expected to report a 28 pct increase in full-year profit today, helped by steady growth in the core asset management division on the back of buoyant stock markets in the first half of 2007.

Meanwhile, Cable & Wireless is not expected to announce any major restructuring plans including the oft-rumoured demerger when it addresses investors today, although there will be an update on the turnaround in Europe and more light shed on its prospects in Jamaica and across the international business.