FTSE 100 preview: Bounce after US jobs
The FTSE 100 is seen opening up on Monday recovering all of Friday's falls in tandem with overnight gains in most of Asia after Wall Street pared back sharp falls late on Friday.
Monday: Shares should recover this morning.
Commodity issues are likely to lead the bounce back in London as the price of metals and crude oil rose in Asian trade, boosted by a slide in the US dollar on expectations of further Federal Reserve action after Friday's weak US jobs report.
The UK blue chip index closed down 33.39 points, or 0.6% on Friday at 5,332.39 after the weak US jobs data cast doubt over the sustainability of the global economic recovery.
Wall Street fell on Friday after the larger-than-expected drop in July payrolls but, in late afternoon trade, US stocks pared back earlier sharp losses that had driven the major indexes down 1% or more.
And the MSCI Asia Pacific ex-Japan index rose to a fresh three-month high on Monday as the US dollar fell against emerging Asian currencies on Monday on growing expectations the Federal Reserve will have to buy more bonds to support the flagging economy.
But in Tokyo, the Nikkei 225 index missed out as exporters suffered with the yen hovering within striking distance of a 15-year high against the struggling dollar, and with dealers alert for possible government intervention to weaken the currency.
No important domestic economic data will be released on Monday, with little due all week, although June unemployment numbers and the August Bank of England inflation report will be a big draw on Wednesday.
Across the Atlantic, after Friday's US July jobs report, investors will only have the July employment index data to digest on Monday, so all eyes will be on the latest Federal Reserve rate decision, due after the London market close on Tuesday, although no change is expected to US monetary policy yet.
International Power and French utility GDF Suez could announce an agreement on a planned asset tie-up in coming days, British newspapers reported on Sunday, with both companies due to report first-half results on Tuesday.
BP pressure testing shows it has 'an effective cement plug' on its Macondo oil well in the Gulf of Mexico, the company said on Sunday. The test's results showed BP's 'desired outcome,' the company said in a statement posted on its website.
Also, the drilling rig at the centre of the Gulf of Mexico oil spill had a history of overdue maintenance tasks and a poor safety culture, the Sunday Times reported, citing an internal BP.
Mitchell's & Butlers is expected to announce on Monday the sale of its Hollywood Bowl chain of tenpin bowling centres for £25m to AMF Bowling, The Times said on Monday.
Also, John Lovering, M&B's chairman has given a private vow to investors that he will work on resolving the group's divisive share ownership structure, The Independent on Sunday said.
Social housing group Connaught is considering a debt-for-equity swap as a way of recovering from recent controversy over its accounts that has seen its shares fall from 320p in early June to Friday's closing price of 15.5p, The Sunday Times said.
Outsourcing giant Serco and Circle, Europe's biggest healthcare workers' partnership, are fighting to win the contract for Britain's first privately run NHS hospital after Hinchingbrooke hospital in Cambridgeshire ran up £40m of debt, leading the local health authority to take the unprecedented decision to offer its administration to market, The Sunday Telegraph said.
Nathan Kirsch, the billionaire South African investor who holds a 29.5% stake in Minerva, is urging fellow investors to back his attempts to oust the property developer's chairman and chief executive, The Observer said.
There will be updates today from Morgan Sindell, Hill & Smith Holdings, Dragon Oil and Aer Lingus.
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