FTSE preview: Oil stocks bolster Footsie

By REUTERS
Updated:

 

The FTSE 100 is expected to rise after gains in Asia and on Wall Street, with commodity stocks offering support despite thin trading volumes.

People walk past London's Stock Exchange

Taking stock: Trading is winding down ahead of Christmas.

The blue chip index is seen gaining as much as 0.6% by financial bookmakers after it added 19.86 points, or 0.3% on Monday to close at 5,891.61.

British consumer confidence remained steady at its lowest level since July this month as a rise in shoppers' willingness to buy big-ticket items offset growing pessimism over the economy, a survey showed on Tuesday.

Japan's Nikkei share index gained 1.5% as investors picked up bargains after recent price falls.

Commodity stocks are likely to be supportive for the index as crude oil and metals prices were in positive territory, which should help heavyweight energy companies and miners.

Rip Tinto is talking to Australian-listed coal miner Riversdale about a higher $3.8bn takeover bid, according to a media report, ahead of a possible bidding war for the African-focused target.

Separately, a storm that smacked into Western Australia late last week will cut Rio Tinto's iron ore shipments by between 500,000 tonnes and 1m tonnes this year, or less than half a percent of its annual output, the company said on Tuesday.

Australia's biggest mining companies on Tuesday may have won a long-running battle with prime minister Julia Gillard after an influential tax panel recommended the government pick up future state royalty payments under its mine tax reform package.

Insurer Admiral gained late on Monday on talk of a possible £4.8bn cash offer from Zurich Financial, the Daily Mail market report said, without citing sources.

British Business Secretary Vince Cable has considered ways to shed more light on how bankers are paid as bosses from Royal Bank of Scotland, Barclays, HSBC and Lloyds prepare to meet him today.

Power station operator Drax could be the target of a 500p-a-share bid approach from a private equity firm, the Daily Express' Market Report said.

CPP Group releases a trading update today.

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