FTSE preview: Rally after blue Monday
The FTSE 100 index is expected to recover some ground today after tumbling on Monday with miners and energy stocks bouncing back.
Rally: Shares should bounce this morning.
The FTSE 100 is seen rising as much as 0.4% after it dropped 2.1% on Monday to close at 5,550.95.
Commodity stocks were hammered as metal and energy prices slid on concerns that the bailout for Ireland may not be enough to stop the financial crisis spreading to other euro zone countries.
The rout had initially continued on Wall Street but stocks there finished well off their lows as the dollar retraced some of its earlier gains and financial stocks rallied late in the session but investors were still cautious.
'Despite the positive open traders will be highly on edge,' said Jonathan Sudaria, night dealer at London Capital Group. "Continual fears of contagion from the European debt crisis ... could easily fuel another day of bearishness."
On the domestic data front, British consumer confidence weakened more than expected in November as people were the most downbeat about the prospects for their personal finances in almost two years, a survey showed on Tuesday.
The GfK/NOP consumer confidence barometer fell to -21 in November from -19 in October, below analysts' forecasts for a reading of -20 and the weakest reading since July.
Bearish signals on the global economy came out of Asia too. Factories in Japan and South Korea cut output in October, adding to evidence of an Asia-wide slowdown and boding ill for the rest of the world that has relied on the region to keep the global economy humming.
Later, investors' focus will turn to US house prices, Chicago PMI readings and consumer confidence data, giving an indication of the strength of the recovery in the world's biggest economy.
Japan's Nikkei average fell 1.9% on Tuesday, but gained 8% overall in November.
Specifications for a new type of British warship designed by BAE Systems will be scaled back to shrink costs, which could prompt the country to order more ships, defence sources said on Monday.
Top iron ore miners Vale and Rio Tinto are likely to raise contract prices by 4% for the first quarter from the fourth quarter, reflecting gains in spot prices over the past three months, an official at price provider, The Steel Index (TSI), said on Tuesday.
GlaxoSmithKline confirmed plans to invest £500m in Britain after the government announced a new lower 10% tax rate on profits from newly commercialised patents on Monday.
Taylor Wimpey has put its US homebuilding subsidiary Taylor Morrison on the auction block and hired JPMorgan Chase to advise on the sale, people familiar with the matter said.
Bank lenders are set to take over ailing British subprime lender Catles under a restructuring plan launched on Monday that averts, for now, the prospect of administration.
There will be results today from Aberdeen Asset Management, Findel, Gooch & Housego, Holidaybreak, Halma, Hogg Robinson, ITE Group, Northumbrian Water, Shaftesbury and Topps Tiles.
Reader service: Free brochure guides
Completely free insider guides on the latest investing trends...
Most watched Money videos
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Mini celebrates the release of brand new all-electric car Mini Aceman
- How to invest for income and growth: SAINTS' James Dow
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mail Online takes a tour of Gatwick's modern EV charging station
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Land Rover unveil newest all-electric Range Rover SUV
- MARKET REPORT: Vodafone shares rally as investors cheer...
- Vertu Motors scores record sales of almost £5bn
- My neighbour has started keeping bees. Is there anything...
- Compass Group ups guidance thanks to major sporting events
- Experian shares rise sharply as credit data giant lifts...
- Leapmotor is the next new Chinese car brand coming to...
- BUSINESS LIVE: Burberry hit by luxury slowdown; Imperial...
- The age you can access work and private pensions will...
- ANOTHER UK tech star is bought by US private equity: KKR...
- Golden Virginia owner Imperial Brands bolstered by higher...
- Axe stamp duty on British shares, says Flutter boss as...
- How refreshing that Anglo has chosen not to grab the...
- Tech firm Raspberry Pi confirms plans to IPO in London
- Tui Group losses narrow thanks to record second quarter
- Burberry profits plummet amid luxury slowdown and China...
- Car makers will miss Government target for electric...
- Czech billionaire Daniel Kretinsky ups bid for Royal Mail...
- France urges men to 'drive like a woman' as part of new...