FTSE 100 preview: Shares up; BHP, Cairn
The FTSE 100 is seen edging higher on Wednesday, following a sharp decline in the previous session after weak US housing figures reignited concerns about the economic recovery.
Big Wednesday?: Shares should head higher today.
The UK blue-chip index looks set to add 5 to 6 points, or 0.1%, according to financial bookmakers, after it closed down 78.89 points, or 1.5%, at 5,155.95 on Tuesday, its lowest close since July 20.
US stocks fell to their lowest level in seven weeks on Tuesday after an industry group reported that sales of US existing homes in July fell to their slowest pace in 15 years.
Japan's Nikkei average briefly fell more than 2% on Wednesday, hitting a 16-month low, as disappointment spread in the market over a lack of Japanese policy action to rein in the strong yen, which threatens a fragile economic recovery.
Standard & Poor's on Tuesday cut its ratings on Ireland and assigned the country a negative outlook, saying it expects Ireland faces substantially higher costs to support its ailing financial institutions.
No significant domestic economic data is scheduled for release on Wednesday.
On the other side of the Atlantic, July's US durable goods are due while July's US new home sales and the Federal Housing Finance Agency house price index for June are both published.
Ex-dividend factors will knock 0.21 points off the FTSE 100 index on Wednesday, with Eurasian Natural Resources and InterContinental Hotels both trading without their payout attractions.
BHP Billiton plans to step up pressure on the $39bn takeover target Potash Corp with a request to remove a poison pill, sources said, as the world's biggest miner gets set to report massive profits.
Australia's next minority government will be under pressure to retain a proposed mining tax, with three out of four independent and Green MPs who hold the balance of power saying they supported the controversial tax.
State-run Oil and Natural Gas Corp is divided over making a counter-bid for Cairn India, which is the target of a $9.6bn takeover offer by Vedanta, the Business Standard reported on Wednesday.
There will be results today from Tullow Oil, Admiral Group, Aggreko, Serco Group, Derwent London, Forth Ports and SIG.
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