FTSE preview: Shares rally as M&S reports
The FTSE 100 is seen opening modestly higher thanks to a rally by commodity prices, although investors remained nervous on euro zone debt concerns.
New day: The Footsie will aim to recover losses.
Financial bookmakers expect the UK blue chip index to start up 5-13 points, or 0.2 points on Tuesday, having closed 112.60 points, or 1.9% lower at 5,835.89 in the previous session, its lowest closing level since March 23.
Commodity stocks led the decline on Monday as investors' risk appetite vanished on fears of further sovereign debt crises after ratings agency Fitch downgraded Greece's debt by three notches on Friday, and rival Standard & Poor's cut its outlook for Italy to 'negative' from 'stable' the following day.
Doubts about austerity measures in Spain added to the worries after the country's ruling Socialist party was defeated in regional elections.
US stocks closed at their lowest levels in a month on Monday in a sign of increasing doubt that equity markets can weather recent weakness in global manufacturing and demand. But Asian equities managed to post modest gains on Tuesday, steadying as commodity prices rallied, with copper up 0.9%, and Brent crude futures ahead 0.7%.
Technical analysis of the FTSE 100 index, however, remained cautious.
'After showing several signs of weakness over the past two weeks, the FTSE 100 finally broke through support at 5,858.00, confirming the downtrend and signaling the possible start of a move to much lower levels,' said Enis Mehmet, analyst at Autochartist.
'The quick nature of the break suggests possible short-term oversold conditions. With the market trading inside of a potential support zone and after reaching oversold levels, traders shouldn't be surprised by a fast short-covering rally to set up the next shorting opportunity,' Mehmet added.
On the macroeconomic front, British government finances will come under scrutiny on Tuesday, with April PSNCR and PSNB due.
May's CBI distributive trades survery will also be released.
Across the Atlantic, April US new homes sales will be the main focus, due for release.
Marks & Spencer delivers full-year results today.
Unconditional trading begins in commodity trader Glencore's stock following last Thursday's London debut after its record £11bn IPO, with the shares set to join the FTSE 100 index from the start of trading on Wednesday, replacing Invensys.
The Independent Commission on Banking, chaired by John Vickers, is planning to set a minimum amount of bond-funded capital that banks should hold in addition to equity, with a number of 4% or 5% looking likely, The Financial Times said.
There will be results today from Pennon Group, C&W Worldwide, De La Rue, Great Portland Estates, Homeserve, Victrex, Holidaybreak, Paragon Group, Endace, Big Yellow Group and Strategic Thought Group.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Blue Whale fund manager on the best of the Magnificent 7
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Land Rover unveil newest all-electric Range Rover SUV
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mail Online takes a tour of Gatwick's modern EV charging station
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- British tech firm Raspberry Pi eyes £500m London float in...
- America's latest inflation figures are a gift for Andrew...
- MARKET REPORT: Bumper blue chips send Footsie to another...
- United Utilities revenues near £1.9bn thanks to higher...
- We started investing for our first daughter when she was...
- David Cameron's mother-in-Law quits luxury furniture firm...
- EasyJet boss to step down as airline reveals it raked in...
- BT Group ups dividend despite losing almost...
- Drivers are being stung at the pumps by fuel retailers...
- The £60bn foreign takeover frenzy: Royal Mail just the...
- Anglo to sell coking coal arm for £4.75bn in bid to...
- The age you can access work and private pensions will...
- Czech billionaire Daniel Kretinsky ups bid for Royal Mail...
- Car makers will miss Government target for electric...
- Electric car quotas risk creating 'volatility and...
- BUSINESS LIVE: BT to boost free cash flow; EasyJet CEO to...
- Young people most likely to get in debt with loan sharks,...
- Trading blows over Israel: How global commerce is being...