FTSE preview: Shares up; Tesco results
The FTSE 100 is seen opening up after similar modest gains in Asia as investors applauded US President Barack Obama's compromise deal to extend all Bush-era tax cuts.
Taking stock: Shares should rise this morning.
However, lingering concerns over the euro zone debt crisis, and worries of a possible Chinese rate hike could help limit the gains.
China is likely to raise interest rates in the coming days in a demonstration of the government's resolve to tame inflation, an official newspaper said on Tuesday.
The UK blue chip index closed 24.96 points, or 0.4% higher on Monday at 5,770.28, its highest closing level since November 15 buoyed by strength in energy issues after crude reached a two-year peak. However China rate hike worries pulled the oil price lower overnight.
US stocks ended mixed on Monday, but futures moved higher after news late on of a 'framework' agreement between President Obama and Republicans that would renew tax cuts for two years not just for the middle class but also for wealthier Americans, as Republicans wanted.
Meanwhile, British retail sales growth slowed in November, as consumers proved reluctant to splash out on expensive items at a time of public spending cuts and higher taxes, a survey showed on Tuesday.
The British Retail Consortium said sales values were 0.7% higher than a year ago on a like-for-like basis. Total sales, which include new floorspace, were 2.8% higher.
Elsewhere on the macroeconomic front, British October industrial and manufacturing output numbers will be released.
US October consumer confidence and ISM manufacturing and non-manufacturing semi-annual economic forecasts will be unveiled.
Euro zone debt worries will remain a focus. After a five-hour meeting, the bloc's finance ministers said late on Monday they would be taking no new measures to tackle the contagion, saying the existing emergency fund was sufficiently big and that the proposal for euro zone bonds had not even been broached.
Investors were also braced for Ireland's budget vote. Prime Minister Brian Cowen is expected to get his fiscal plan through parliament and avert the risk of a snap election.
Reader service: Free brochure guides
Completely free insider guides on the latest investing trends...
HSBC continued to act for funds that fed money into Bernard Madoff's Ponzi scheme despite repeated warnings from the bank's own executives and outside auditors about the 'baffling' and potentially fraudulent structure of the fund, according to a US lawsuit launched against the global bank, The Financial Times said.
BP has approached several UK-focused energy companies about a potential sell-off of North Sea assets worth around $1bn, The Daily Telegraph said on Tuesday.
Workers at the world's No.3 copper mine, Chile's Collahuasi - owned by global miners Xstrata and Anglo American - returned to work on Tuesday after accepting a wage deal to end a 32-day strike, the longest-ever at a major private mine in the top producing country.
Junior stock market AIM is poised to launch an investigation into potentially misleading comments made last week by the Falkland Island explorer Desire Petroleum, the Daily Mail reported.
There will be results today from Tesco, Wolseley, Bellway, Innovation Group, Southern Cross Healthcare, Northgate, Victrex, Daisy Group, Dolphin Capital and DCD Media.
Most watched Money videos
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Top Gear takes Jamiroquai's lead singer's Lamborghini for a spin
- Land Rover unveil newest all-electric Range Rover SUV
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mini Cooper SE: The British icon gets an all-electric makeover
- Mail Online takes a tour of Gatwick's modern EV charging station
- Leapmotor T03 is set to become Britain's cheapest EV from 2025
- A look inside the new Ineos Quartermaster off-road pickup truck
- Introducing Britain's new sports car: The electric buggy Callum Skye
- Blue Whale fund manager on the best of the Magnificent 7
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- MARKET REPORT: Fresnillo sparkles as gold hits a record high
- Would you work from a car office? Ford patent shows how...
- SSP Group shares slump as profits hit by European rail...
- I'm 85 and no longer fit to drive. But when I took my...
- Five magic words you must say to BT if you DON'T want to...
- Bitcoin and other cryptos rally as investors eye US...
- BUSINESS LIVE: AstraZeneca eyes $80bn in sales; Credit...
- South West operator Pennon to hand-out £3.5m in...
- The one thing you have to add to your shed to make sure...
- CVS sells Dutch and Irish vet businesses for just €2
- Visa and Mastercard could face transparency crackdown as...
- AstraZeneca targets $80bn in yearly revenues by 2030
- Cazoo collapses into administration putting more than 200...
- Screwfix owner Kingfisher suffers 'big-ticket' spending...
- Top investor throws weight behind Anglo American break-up...
- Sajid Javid eyes job at Shein as the Chinese fast fashion...
- Stamp duty on shares must be axed, says London Stock...
- Bank sets the scene for summer rate cuts as deputy...