LONDON (Thomson Financial) - Leading shares look set for a firmer start
after Wall Street posted strong gains overnight on the back of easing oil prices
and Asian markets were higher this morning amid hopes of China could relax its
monetary policy.
Spread-bettors IG Index see the FTSE 100 index opening around 55 points
ahead after recovering from a session low of 5,071.1 Wednesday to close at
5,150.6, down 21.3 points.
Overnight, Wall Street bounded higher thanks to a drop in oil prices
following news of a bigger-than-expected rise in U.S. crude reserve, which saw
light, sweet crude fall $4.14 to settle at $134.60 a barrel on the New York
Mercantile Exchange, bringing its two-day decline to $10.58.
The Dow Jones Industrial Average rose 276.7 points to 11,239.3, while the
Nasdaq Composite added 69.14 to 2,284.85 and the S&P 500 index gained 30.45 to
1,245.36.
Investors also found relief in a decision by Wells Fargo to boost its
dividend, helping to counter some of the market's concerns about the health of
banks.
Over in Asia, Hong Kong shares ended the morning session higher on Thursday,
with investors hoping that China may start easing its monetary policy after
official figures showed a decline in inflation and slowing national growth.
Hong Kong's Hang Seng index ended the morning up 545.08 points at 21,768.58,
while Japan's Nikkei 225 was 116.70 higher at 12,877.50 at last check.
In London, banking plays are likely to recoup some of Wednesday's losses
amid easing concerns over the U.S. financial system, with HSBC higher Thursday
morning in Asian deals.
But investors are likely to remain cautious ahead of earnings releases from
JP Morgan Chase and Merrill Lynch late Thursday, and Citigroup Friday.
Bradford & Bingley will also be in the spotlight this morning as the
troubled bank hosts its EGM, at which shareholders will cast their votes
regarding the mortgage provider's proposed rights issue.
Elsewhere, FTSE 250 member Mothercare will update the market on trading at
its annual meeting Thursday.
In May, the maternity and baby goods retailer said it was "well placed",
despite some caution about the UK consumer environment.
And small cap Blacks Leisure, the outdoor wear retailer, will also update
shareholders at its annual meeting today with investors looking to see if the
group has maintained the solid start to the year it reported in May.
With no UK economic news expected, focus will shift to the United States,
where the release of housing starts and weekly employment data will keep
investors occupied.
North American initial jobless figures are expected to show an increase to
378,000 in the week ending July 12, after falling by 58,000 in the previous
week, while the latest figures for new house building starts is expected to show
a year-on-year fall to 960,000 in June, compared to 975,000 last time.
holly.cook@thomsonreuters.com
hco/sal
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|