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.
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