FTSE preview: Shares up as banks bounce

By Reuters
Updated: 02:48 EDT, 18 November 2010

The FTSE 100 is seen opening higher on Thursday, according to financial bookmakers, extending gains made in the previous session in tandem with advances overnight in Asia, with commodity issues seen higher.

Taking stock: Markets should continue to rise today.

The UK blue chip index is seen gaining around 0.4% after it closed 10.66 points, or 0.2% higher on Wednesday at 5,692.56 led by a rebound by banks which had been weighed down by concerns over Europe's debt problems.

Ireland agreed on Wednesday to work with a European Union-IMF mission on urgent steps to shore up its shattered banking sector, a process that could lead to a bailout despite Dublin's deep reluctance.

Asian equity markets moved higher on Thursday, recovering after an eight-day sell-off, with Japan's Nikkei index led higher by financial issues.

Commodity issues got a lift as crude and metal prices rebounded as the dollar weakened following subdued US inflation data on Thursday which supported the Federal Reserve case for further quantitative easing.

British October retail sales will be the main macroeconomic feature in the morning, with a 0.4% monthly increase forecast, after a 0.2% decline in September, giving a year-on-year fall of 0.1%, after a 0.5% annualised rise in the previous month.

British Goverment borrowing numbers for October will also be released, while the November CBI industrial trends survey is also due today.

Across the Atlantic, the latest weekly US jobless claims numbers will be scrutinized with October lead indicators and November's Philly Fed index both due.

BG Group has launched a search for a new chairman to replace Robert Wilson and has appointed headhunter Egon Zehnder, the Daily Telegraph said, citing "insiders".

BP's board will tighten its oversight of the oil group's day-to-day operations following the Gulf of Mexico oil spill, its chairman Carl-Henric Svanberg said in an interview with the Financial Times.

Global and Atlas Iron Ltd have started discussions about cooperating on iron ore haulage and port access in Australia's Pilbara region in a move that could open up BHP's proprietary rail network for the first time, The Wall Street Journal said.

The managers of Barclays Private Equity have agreed to acquire the bank's buy-out arm without making an upfront payment but in return for a share of future profits, the Financial Times said.

About 40 Rolls-Royce engines used in the world's fleet of Airbus A380 aircraft may need to be replaced to ensure safety after one such engine partly disintegrated mid-flight this month, Australia's Qantas said. Melrose has hired Rothschild to advise it on the sale of its prized asset Dynacast for about £350m, The Daily Telegraph said.

There will be results today from SABMiller, National Grid, Investec, Intertek, Capita, London Stock Exchange, Close Brothers, Qinetiq, Chaucer Holdings, Halfords, Derwent London, Ricardo, Avis, Dart Group, Norcros, UK Mail, Melrose, Allergy Therapeutics, Sinclair Pharma AND Town Centre Securities.