LONDON (ShareCast) - UK stocks are expected to get Monday's session off to a positive start following a rally in the US on Friday, but analysts have warned last week's volatility may well run into this one.
City sources predict the FTSE 100 will open around 24 points higher than Friday's close of 6,310.29.
"It looks like the volatility in equity markets may not yet be over as investors seem to have decided we can re rally from the lows seen over the last few weeks or so," explained Alpari market analyst James Hughes.
"US and European markets staged an impressive comeback on Friday managing to help lead a recovery to the correction. However, we cannot yet rest easy and get back into the long term buying trend, with a whole host of economic data due for release this week and the all-important Chinese gross domestic product (GDP) figures set for release no one could rule out yet more selling."
Monday's session is expected to be a fairly quiet one with little out in the way of economic releases, meaning investors are likely to be focusing a significant part of their attention on events happening later in the week, particularly the Chinese GDP reading, which is expected to show a decline to 7.2% when released on Tuesday.
In company news, Close Brothers has sold its German securities business, Close Brothers Seydler Bank, for £36m. The proceeds will be reinvested in the company's core businesses of lending, wealth management and securities trading in the UK.
James Bowling, the interim chief financial officer (CFO) of pharmaceutical group Shire, is to leave the company for utilities group Severn Trent. Bowling will replace Severn Trent's current CFO Mike McKeon, who gave his notice to the board on Monday that he wants to retire in spring 2015.
Pub group Spirit has received a fresh takeover offer from rival Greene King at about 109.5p per Spirit share. Spirit has told Greene King it would recommend the offer subject to approval of other terms and is in talks with them.
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