FTSE preview: Shares down; MPC minutes
The FTSE 100 was seen opening down 25-31 points, or 0.6%, on Wednesday, according to financial bookmakers, retreating after Tuesday's strong rally, with energy issues expected to be weak tracking an easier crude price.
Taking stock: Shares are seen retreating today.
The blue-chip index closed 74.45 points, or 1.4%, higher on Tuesday at 5,350.55 for its highest close in a week, driven by strength in financials and commodity stocks as fears about a global economic slowdown abated and raw material prices gained.
'There is a rising wedge formation that has formed on the 30-minute time frame. So, if prices cannot maintain support above the uptrend line support at 5,340, look for a pullback lower towards support between 5,313 and 5,279,' said Raghee Horner, chief market analyst at Autochartist.
'This will result in a correction that is likely to be bought into since the 15, 30, and 60-minute charts are all in mark up cycles. The bulls will look at a near-term move lower as an opportunity to buy into the renewed strength in the FTSE,' Horner said.
US stocks gained strongly on Tuesday as earnings from major retailers, a takeover bid in the agriculture sector and a jump in US industrial production restored optimism about the profit outlook.
But weaker than expected US housing starts took some of the shine off the positive picture, and while Asian stocks rose on Wednesday, the gains were more muted.
Investors will eye the release of minutes from the August Bank of England Monetary Policy Committee meeting with no other domestic data due for release on Wednesday.
Forecasters expect the MPC to have voted 7-1 once again to keep British interest rates on hold at record low levels, and for it to have voted 8-0 to maintain its quantitative easing policy.
The only US data to be released on Wednesday will be weekly mortgage and refinancing indexes.
Ex-dividend factors will knock 8.56 points off the FTSE 100 index on Wednesday, with Anglo American, BAT, Carnival, Fresnillo, Hammerson, HSBC, Pearson, Prudential and Standard Life all trading without their payout attractions.
BHP Billiton may go hostile with its $39bn bid for fertiliser group Potash Corp as early as Wednesday, a source said, setting the stage for a possible higher offer.
Eurasian Natural Resources unveils first-half results.
Shire said on Tuesday it will stop selling a low blood pressure drug that US regulators said was never proven to help patients. On Monday, the Food and Drug Administration proposed withdrawing ProAmatine because the agency said Shire did not complete required post-approval studies to verify benefits suggested in early testing.
Barclays won a 'sweetheart deal' from the Justice Department in a proposed settlement of criminal charges that accuse the bank of violating US trade sanctions, an US District Judge, Emmet Sullivan said at a hearing on Tuesday.
Royal Bank of Scotland has notified 250,000 of its small business customers that under a negotiated deal current accounts, loans and associated foreign exchange will be some of the services automatically transferring to rival Santander, the Daily Telegraph said.
C&W Worldwide has won a five-year contract to supply telecoms services to retailer Next, The Times said. CWW is understood to have won the contract from Global Crossing-owned rival Fibernet and the deal means that the group now has contracts in place with all of the FTSE 100 retailers.
The Daily Mail's market report notes revived takeover gossip surrounding the West Africa-focused oil and gas exploration group Afren. The newspaper says BG Group considers Afren to be the perfect bolt-on acquisition and a way to increase its potential in Africa.
There will be updates today from Hochschild Mining, Henderson Group, Lookers, Xaar, Primary Health Properties, Invista European Real Estate and Mulberry.
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