FTSE 100 preview: Shares up; Metals rise
The FTSE 100 is expected to open higher this morning, tracking gains on Wall Street and in Asia, with heavyweight metal shares set to benefit from firmer metal prices.
Taking stock: September was a good month for shares.
The UK blue chip index closed up 44.28 points, or 0.8%, at 5,592.90 points on Friday, making a good start to the new month after gaining 6.2%in September.
Wall Street moved higher on Friday, led by advances in resource stocks after data in China showed a pick-up in manufacturing activity, although gains were tempered by US data suggesting the rate of growth in US factory activity slowed, but the upbeat trend in the market prevailed.
Asian stocks shot to a two-year high on Monday, helped by emerging market funds, while the dollar rebounded after last week's selloff on speculation the Federal Reserve will boost money supply.
However, the Federal Reserve must not launch a new round of asset purchases without setting out what it wants to achieve through the policy, the Financial Times quoted Philadelphia Fed President Charles Plosser as saying.
Meanwhile, the former deputy Governor of the Bank of England, John Gieve, on Monday shrugged off suggestions that the economy was heading for a Japanese-style slump and urged the central bank not to print more money.
On the macro front, little important UK data is due for release this week, although September's construction services PMI report will be released, so investors will look ahead to Thursday's Bank of England Monetary Policy Committee meeting for some direction.
Investors' main focus, however, will be on Friday's US September jobs report, although there will be a fair amount of US data to chew over before then, with August factory goods, durable goods revisions and pending home sales data all due.
Impending third-quarter US corporate earnings will also be on investors' minds, with Alcoa due to kick-off the season on October 7 on the domestic front, trading updates from retailers Tesco, J Sainsbury, and Marks & Spencer will feature later in the week.
BHP Billiton on Friday requested a US court to dismiss a lawsuit filed by Potash Corp, which alleges that BHP misrepresented material facts related to its $39bn hostile bid for the world's largest fertilizer maker.
Royal Bank of Scotland has emerged as the bank with the most to lose in the event that economic laggard Ireland cannot repay its debts, the Daily Mail said on Monday.
Also at least three potential bidders are casting an eye over a £3bn portfolio of property loans that could be sold by Royal Bank of Scotland, the Sunday Times reported.
Many British banks may need another state bailout next year and their borrowing requirements could hit £25bn a month, the New Economics Foundation (NEF) thinktank said on Monday.
A four-strong group of insurers, including RSA and Resolution, discussed mounting a multibillion pound break-up bid for Aviva but the talks fizzled out as Resolution could not reach a valuation it was happy with, The Times said on Monday.
Tesco's plans to sell mortgages in Britain could face a delay because it has yet to receive approval from the country's financial services watchdog.
US hedge fund Harbinger Capital is planning to sell a 10% stake in British satellite firm Inmarsat worth close to £300m, the Sunday Times reported.
Britain's biggest food producer has received approaches that could lead to the sale of its meat-free business, including the Quorn brand, it said on Sunday.
US conglomerate General Electric is the mystery bidder planning an £800m-plus takeover of the British oilfield services firm, the Sunday Times newspaper reported.
Rockhopper is planning a $150-$200m rights issue to fund more wells in the waters off the South Atlantic islands, the Sunday Times reported.
XP Power issues a trading update today.
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