Overview: following strong sessions in other stock markets, the UK blue chip index is seen tacking on as much as 0.8% in early trade today following to recoup most of the losses it suffered yesterday amid weakness in the financial and commodity sectors.
The US stock market switched to bullish mode closer to the end of the day as S&P 500 and the Nasdaq composite came back to positive territory with small gains, while the Dow Jones industrial average trimmed its losses to just 0.2%. The market was impacted by Morgan Stanley’s downgrade of semiconductor stocks and Warren Buffet’s £22 billion acquisition of US railroad company Burlington Northern Santa Fe Corporation.
Investors will be waiting for the Fed’s decision on interest rates today, which will come after trading comes to a halt in London.
Oil prices rose today with December Brent Crude climbing to US$78.02/barrel, while US light, sweet crude for December delivery stopped 45 cents short of recapturing the US$80/barrel mark.
Gold prices spiked with the yellow metal coming within sight of US$1,100/oz, standing at US$1,083/oz in the morning. Silver and Platinum improved to US$17.18/oz and US$1,354/oz respectively.
Base metals slightly improved with Copper and Nickel rising to US$2.99/lb and US$8.25/lb respectively, while Zinc was just short of US$1/lb.
Asian markets also were on the rise with Hong Kong’s Hang Seng adding 1.63% by midday and Japan’s Nikkei tacking on 0.4%, while China’s Shanghai Composite Index inched 0.5% higher.
Pharmaceutical company GlaxoSmithKline (LSE: GSK), quality and safety services provider Intertek Group (LSE: ITRK) and oil and gas supermajor Shell (LSE: RDSB) will be trading ex-dividend.