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FTSE 100 poised for higher open as commodities recover, Dow Jones and S&P 500 climb

16th Mar 2010, 7:52 am FTSE 100 poised for higher open as commodities recover, Dow Jones and S&P 500 climb

The FTSE 100 is projected to gain about 0.5% in early trade to recoup most of yesterday’s losses, when the blue chip index shed 0.6% after mining and energy stocks weakened on lower oil and metals prices. Stock are seen higher following yesterday’s late rally on Wall Street, which saw the main indices climb out of the red and finish with marginal gains.

The Dow Jones Industrial Average gained 0.15% after turning negative early and remaining in the red for the better part of the day, while the broader S&P 500 index posted an insignificant gain.  However, the technology heavy NASDAQ composite ended the day with a 0.2% loss.

Asian stocks were mixed today. Hong Kong’s Hang Seng slid 0.2%, Japan’s benchmark Nikkei 225 was down 0.3% and South Korea’s KOSPI was down marginally, while Australia’s S&P/ASX 200 rose 0.3% and China’s Shanghai Composite Index added 0.5%.

Just five FTSE 100 constituent gained more than 1% on Monday. Energy company Centrica (LSE: CNA) was in the lead with a 1.6% advance, pharmaceutical company Shire (LSE: SHP) added 1.2%, while telecom group BT (LSE: BT.A) and car insurer Admiral Group (LSE: ADM) added 1.1% and beverage group SABMiller (LSE: SAB) rose 1%.

Miner Eurasian Natural Resources (LSE: ENRC) was at the bottom of the pile with a 3.4% loss, while plumbing and heating equipment manufacturer Wolseley (LSE: WOS) moved down 3.3%. Miners Antofagasta (LSE: ANTO), Fresnillo (LSE: FRES) and Xstrata (LSE: XTA) declined 3%.

Commodities

Oil prices were at the same level as yesterday. May Brent Crude stood at US$78.67/barrel, while US light, sweet crude held steady at US$79.82/barrel.

Precious metals headed in different directions as while gold and silver reached US$1,111/oz and US$17.19/oz respectively, platinum dropped to US$1,617/oz.

Base metals gained with copper and nickel advancing to US$3.32/lb and US$9.79/lb, while zinc inched higher to US$1.02/lb.

Bank Close Brothers Group (LSE: CBG) will report on its interim results on Tuesday, while IP commercialisation company Amphion Innovations (AIM: AMP), security services group G4S (LSE: GFS) and oil and gas services company Wellstream Holdings (LSE: WSM) will release their finals.

US housing starts update is also due today.

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