- FTSE 100 adds 13 points
- Nasdaq leads New York gains ahead of tech earnings
- Unilever up as rising prices support sales growth
4.55pm: FTSE stays ahead at the close
The FTSE 100 claimed another day of gains on Tuesday, adding 0.2% to close at 7,692, supported by strong gains for miners including Anglo American, Antofagasta, Rio Tinto and Glencore.
That's after measures by Chinese authorities to support the world's second-largest economy raised hopes that they will boost demand for resources.
By the London close, the Dow Jones Industrial average was 0.1% higher at 35,442, the S&P 500 had gained 0.2% to 4,565 and the Nasdaq was 0.6% higher ahead of results from Microsoft and Alphabet after the closing bell.
3.55pm: Forex rigging case to proceed
A proposed £2.7 billion mass lawsuit against major banks including Barclays, JPMorgan and Citigroup over alleged foreign exchange rigging was revived by a London court on Tuesday, Reuters has reported.
The case was originally brought by Phillip Evans, a former inquiry chair at the UK Competition Markets Authority, on behalf of thousands of asset managers, pension funds and financial institutions. It is based on findings made by the European Commission, which fined banks more than 1 billion euros in 2019 for rigging the multitrillion-dollar foreign exchange market between 2007 and 2013.
Evans brought the case on an opt-out basis, meaning potential claimants will be included in the claim unless they choose to opt-out. However, the Competition Appeal Tribunal last year ruled the claims could only be brought on an opt-in basis, meaning claimants have to expressly join the case, even though it found that rendered them unviable.
But the Court of Appeal today overturned that decision, Reuters said, allowing the case to proceed at the Competition Appeal Tribunal.
Reuters noted that Evans's lawyer, Anthony Maton from law firm Hausfeld, said in a statement: "A judgment of this nature was required for all those UK businesses – big and small – who have suffered loss as a result of the manipulation of the FX markets to achieve restitution."
3.30pm: Crude prices hover
Oil prices just edged higher on Tuesday afternoon, consolidating near three-month highs as signs of tighter supplies and pledges by Chinese authorities to shore up the world's second-biggest economy were countered by caution ahead of this week’s central bank rate decisions.
UK Brent futures were 0.01% higher at $81.65 a barrel by 1340 GMT, while US West Texas Intermediate (WTI) added 0.1% at $78.84. The crude benchmarks have already chalked up four weekly gains in a row, with supplies expected to tighten due to output cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allies.
Craig Erlam, Senior Market Analyst, UK & EMEA, at OANDA commented: “Oil prices barely changed on Tuesday, after appearing to have been little impacted by the promise of new Chinese stimulus. This further supports the view that the lack of detail is stalling any reaction in the markets and that only once we get that can we determine how effective it will be in stimulating demand.
“We've already seen some powerful gains over the last four weeks, with Brent up almost 15% from its late June lows. That was driven by cuts from Saudi Arabia and Russia and then better economic readings elsewhere that supported the case for a soft landing following a very aggressive monetary tightening cycle.”
Traders were also eyeing expected 25-basis-point rate hikes from both the US Federal Reserve and the European Central Bank this week.
Data from the US on Tuesday saw business activity slow to a five-month low in July, but falling input prices and slower hiring indicated that the Fed could be making progress on its bid to reduce inflation.
3.10pm: Confidence improves
UK consumer confidence has hit its highest level in 18 months, according to a Summer survey by accountants PwC, with an improvement in sentiment across all demographics since the Spring.
According to research carried out at the beginning of July, PwC said confidence now sits at -13 versus -25 in Spring after the UK budget. That is also a 31-point improvement on last September and a 32-point improvement since the beginning of January 2023.
The survey found the variance between age groups and socio-economic groups narrowing, albeit with under-25s remaining the most positive age group, and 55 to 64s the least positive.
Lisa Hooker, PwC’s leader of industry for consumer markets, said: "It is encouraging to see the growth in sentiment across all ages and demographics. Whilst inflation remains the biggest factor affecting finances, we're also seeing fewer people cutting back and spending intentions have consistently improved over the past 12 months."
2.50pm: Wall Street wavering on positive
The FTSE 100 index overcame its afternoon torpor and pushed back up towards session highs above 7,700 as US stocks started mixed on Tuesday, but with the Nasdaq Composite lifted by hopes for some mega-tech results, with Microsoft and Alphabet due to report after the New York closing bell.
Around 15 minutes after the Wall Street open, the Nasdaq Composite had added 50 points or 0.4% at 14,109 points, while the S&P 500 was flat at 4,554 points and the Dow Jones Industrials Average was modestly lower, down 28 points or 0.1% at 35,383 points.
Investors were also weighing up a deluge of more traditional earnings released Tuesday morning, including numbers from General Motors, General Electric, Xerox, Verizon, 3M, and Spotify.
“Adding season continues to ramp up, and several stronger-than-expected second-quarter results have helped to fuel bets the economy is heading towards a soft landing despite elevated interest rates,” noted FOREX.com senior market analyst Fiona Cincotta.
2.30pm: Blame game
New research from BullionVault reveals that private investors blame both the government and central banks for inflation hitting and holding at near 4-decade highs. The government for borrowing and spending too much (28%), and central banks for keeping interest rates much too low for much too long (27%).
The results found some investors attribute high inflation to Russia’s invasion of Ukraine (8%) while only 2 people out of 1,442 respondents think high-wage demands have driven up the cost of living (0.1%).
BullionVault's customer survey found that, when asked about inflation running so high, more than 1-in-4 (29%) blame a combination of reasons, also including green energy policies, the ongoing impact of supply chain problems and shortages post-Covid pandemic, and also corporate bosses for raising prices to increase their profit margins. Each of those causes polled around 2% of responses as an individual answer.
Private investors also shared their views on the best way to reduce inflation. The majority (36%) believe the Government must cut its borrowing and spending, while 18% say central banks must hike interest rates and keep them high. One in eight (13%) say there isn’t a single action that offers the best way to reduce inflation – that it needs to run its course – while another 14% say it's already easing back and keeping interest rates too high risks a deep recession.
Adrian Ash, director of Research at BullionVault, commented: “It shouldn't be surprising that government borrowing and spending rank second behind central-bank policies among the causes of today's inflation, because it wasn't until massive fiscal stimulus was unleashed during the pandemic that low interest rates and QE money creation finally spurred a jump in the cost of living.
"Most interesting is the lack of party- or group-identity politics in apportioning blame, with corporate profit-seeking polling very low and wage demands barely registering as a cause of inflation among private investors answering BullionVault's latest survey."
"Investors seem unconvinced by political arguments either way, be it from the government in response to strikes for better wages or criticisms of corporate profiteering," Ash added.
2.15pm: Smart water
Thames Water has told regulator Ofwat it has yet to start a programme of smart meter installation despite a deadline of March 2025.
The embattled utility was allocated £71.9mln out of a total of £2.7bn for smart meters as part of the green economic recovery (GER) programme.
In a performance update, Thames Water said: “There has been no delivery on the programme in 2022/23, although £1.062m has been spent on preparatory work for meter installations.”
According to the Guardian, more than 200,000 pre-installation surveys have been carried out and 9,000 digs done to prepare for future meter fitting. More than 900,000 smart meters outside the GER scheme, said the report.
Thames Water has just emerged from a financing crisis that saw its chief executive depart and calls for the utility to be renationalised.
1.27pm: Some of the top risers and fallers on the junior market
Aferian PLC (AIM:AFRN) has pulled off a coup in the current risk-off capital markets, which has starved small-caps of access to much-needed investment. Not only has the video streaming business raised US$4mln in fresh cash (that is around £3.1m in the local currency), it has done so by issuing new shares at around 20% premium to their market price on Monday. The mildly surprising news drove the stock up 23% to 12.9p, valuing the business at £11mln.
Actual Experience PLC (AIM:ACT) jumped 10% after the analytics-as-a-service firm announced its second order for its Digital Workplace Management Platform (DWMP).
Yü Group PLC (AIM:YU.) shares jumped almost 6% higher on Tuesday morning as the smart meter installer revealed that it should exceed its full-year 2023 guidance on the back of strong first-half trading.
N4 Pharma PLC (AIM:N4P) shares leapt 28% higher to 1.91p, up from a recent six-year low, on news of a new US patent and a change of chairman. Nuvec, the novel delivery system for cancer treatments and vaccines, has been granted a further patent application in the US.
Brighton Pier Group PLC (AIM:PIER), the leisure and entertainment business that owns the iconic seaside attraction, saw its share price plummet by 26% after it provided a gloomy trading update for the first half of its financial year ending June 31, 2023. The company said it faces increasing economic pressure due to a decrease in disposable incomes and consumer confidence, which led to sales lagging behind 2022's numbers.
Fire Angel Safety Technology Group PLC (AIM:FA.) shares slipped another 41% as it warned interim losses would be around £3.7mln, or some £2mln higher than expected previously, due largely to hedging losses.
1.00pm: US markets seen flat mulling raft of earnings
US blue chips are expected to start fairly flat on Tuesday, taking a breather after the Dow Jones Industrial Average (DJIA) on Monday extended its longest winning streak since February 2017, with a US rate decision due tomorrow, and more big corporate earnings continuing to flow.
In pre-market trading, futures for the DJIA edged just 0.03% higher, meanwhile, those for the S&P 500 added 0.1%, and contracts for the Nasdaq 100 futures rose more noticeably, up 0.3% ahead of some key tech results.
On Monday, the DJIA rose more than 183 points, or 0.5% marking its 11th consecutive winning session, to close at 35,411, its highest level since April 2022 and its highest close since February 2022. The S&P 500 and the Nasdaq Composite added 0.4% and 0.2%, respectively.
A stronger-than-expected earnings season has helped maintain the market rally. General Electric (NYSE:GE), General Motors and Verizon are set to report earnings Tuesday morning, while mega-cap tech names Alphabet and Microsoft are scheduled to announce quarterly results after the close.
Investors are also awaiting the Federal Reserve’s latest policy decision, due on Wednesday. Fed fund futures data shows a 98% probability of a quarter-point hike, according to the CME FedWatch Tool. Investors are, more importantly, awaiting chair Jerome Powell’s statements on his outlook for interest rates as the Fed tackles waning inflation.
Ahead of the Fed decision, July US consumer confidence data, to be released on Tuesday, will give a snapshot of economic conditions.
TickMill Group’s market analyst Patrick Munnelly commented: "US consumer confidence measures have shown a lot of volatility recently, reflecting uncertainties about the outlook for inflation and interest rates. The Conference Board's confidence measure experienced a significant increase in June, and it is expected to have risen again in July.
"One of the reasons for this expected increase is likely the surge in the alternative University of Michigan consumer sentiment index, which reached its highest level since mid-2020. This rise in consumer sentiment may be driven by hopes that US interest rates are nearing a peak. However, it could also have implications for the Federal Reserve's approach to future rate hikes, possibly encouraging them to proceed cautiously before ruling out further increases."
12.33pm: General Motors lifts guidance after strong second quarter
A huge day of earnings in the US and one of the first out of the blocks with General Motors which has raised guidance for the second time this year, citing strong customer demand.
The Detroit carmaker, behind makes such as Chevrolet, predicted it will earn between US$12bn and US$14bn this year, having raised the bar in April when it said it would bring in US$12.5bn.
GM earned US$3.2bn before interest and taxes in the second quarter, a 38% increase from a year earlier. Revenue rose 25% to US$45bn.
The company also took a nearly US$800mln hit for the Chevrolet Bolt recall after battery flaws caused fires in several vehicles. LG Chem, GM’s battery partner, is bearing the remaining cost for the US$1.9bn recall.
Shares rose 1.2% in pre-market trading.
Later today, Microsoft and Google-parent Alphabet report results.
12.01pm: Decline in UK manufacturing eases according to CBI
Some better news for the beleaguered manufacturing industry.
The CBI’s monthly’s healthcheck on UK industry has found that manufacturing orders declined in July at the weakest rate this year.
This lifted its monthly balance of new orders to -9 from -15 in June, the highest reading since December.
The July CBI Industrial Trends Survey found that output volumes were flat in the quarter to July, ending five consecutive rolling months of decline. Firms expect output to expand in the next three months. #ITS pic.twitter.com/vwrpj5noTY
— CBI Economics (@CBI_Economics) July 25, 2023
Recent falls in output have bottomed out, with firms predicting a pick-up in production over the next quarter.
Encouragingly for consumers, expectations for increases in selling prices cooled further too.
Business sentiment rose, with bosses more optimistic about their export prospects, but investment intentions for the year ahead weakened.
11.29am: Farage mess keeps NatWest boss under pressure
The boss of NatWest Group PLC (LSE:NWG) remains under pressure over the controversial decision to close former Ukip leader Nigel Farage’s accounts at its exclusive private bank, Coutts, and the misreporting of the move.
Cabinet minister Michael Gove weighed in today saying NatWest has “further to go” in resolving the matter.
Amid claims in the Daily Telegraph that chief executive Dame Alison Rose’s career is hanging in the balance, Gove told Sky News: “I have a lot of sympathy for the position Nigel Farage has found himself in.”
“As far as I can tell the decision that was taken to deprive him of banking facilities was a big mistake, something done for the wrong reasons.”
“But it’s not for me to determine what the company should do but I definitely think he was owed an apology, he’s got one, but I think the company has further to go in order to make sure this matter ends appropriately.”
Yesterday, the BBC apologised for its reporting of the story.
The BBC's business editor Simon Jack said "the information on which we based our reporting on Nigel Farage and his bank accounts came from a trusted and senior source."
"However the information turned out to be incomplete and inaccurate. Therefore I would like to apologise to Mr Farage."
11.07am: Eurozone loan demand hits 20-month low
Demand for loans among eurozone companies fell to the lowest level since 2003, a bank survey showed Tuesday, following sharp hikes in interest rates by the European Central Bank.
The decline in the second quarter of 2023 was "substantially stronger than expected by banks," the ECB's quarterly bank lending survey found, with the indicator reaching its lowest measure since the series began two decades ago.
Rising interest rates and reduced investment needs were the main factors behind the latest drop, the ECB said
With the property market looking weak, eurozone banks also reported a decline in demand for housing loans, the ECB said, although the drop was smaller than in previous quarters.
Growing pessimism among households in the euro area likewise contributed to slipping consumer credit demand, the survey found.
10.35am: Moneysupermarket hit by double downgrade by UBS
Moneysupermarket.com (LSE:MONY) Group PLC’s shares have been rattled by a double downgrade by UBS sending shares 3.8% lower at 265.60p.
The Swiss bank cited four main reasons for the move to sell from buy:
1) with shares up c45% year-to-date, the group is now trading at a premium to other online marketplace peers, after adjusting for medium-term growth expectations;
2) it does not expect energy switching volumes to recover to their prior peak;
3) it sees downside risks to consensus 8% revenue growth in 2024 given tough comparatives in insurance and soft trends in money;
4) it believes long term profit growth (ex-energy) is likely to be limited.
The broker also cut its price target to 260p from 275p.
9.58am: Miners boosted by hopes of Chinese stimulus
Mining stocks remain firmly in the green after Chinese authorities pledged to provide more support to boost the world’s second-largest economy.
The Financial Times reported the country’s ruling politburo vowed to boost employment, give more support to the real estate sector and reinvigorate a “tortuous” economic recovery.
The Shanghai Composite index rose 2.1% and the Hang Seng soared 4.1% on the news and this in turn boosted the fortunes of a number of stocks in London.
Hopes of an increased demand for resources led to strong gains in mining stocks while other Asia-focused stocks such as Prudential and Burberry were also in the green.
Danni Hewson, head of financial analysis at AJ Bell pointed out: “Good news from China always makes its way to the UK market in a flash, with commodity producers riding high including a 4% gain from Anglo American and Rio Tinto.”
9.31am: Auto Trader knocked by JP Morgan downgrade
Auto Trader Group PLC (LSE:AUTO) shares are 3.8% cheaper today after investment bank JP Morgan (JPM) downgraded the online car seller to underweight from neutral.
Easing momentum in the core business, a lack of financial bearing from digital retailing initiatives, paired with an unattractive valuation were behind the move, the investment bank said, leaving shares at the top of the FTSE 100 fallers list.
JPM thinks retailer revenue momentum will likely slow, putting downside risk to consensus estimates for flat forecourts, while it expects upselling and ad-on products to evolve at a slower pace.
The broker pointed out the shares have now closed the valuation gap to peers and on 14.0x EV/Ebitda for 2025 it sees the valuation as unattractive.
JPM’s forecasts are 5% and 7% below consensus for 2025 and 2026 respectively and it sees better value elsewhere.
Alongside the rating downgrade, JPM lowered its share price target to 555p from 630p before.
9.19am: Reach soars as digital revenue surges
Good news for shareholders in Reach PLC (LSE:RCH) which have risen 15% to 79p after the national and regional news publisher said it was coping with Facebook’s deprioritising of news with “more sustainable digital revenues”.
Group revenue for the Daily Mirror, Express and Star publisher was down 6.1% to £279.4mln for the half-year to 25 June and statutory operating profits 68% to £11.1mln, but full-year profits were said to be “on track”.
Print sales were down 2.7%, with circulation revenue up 2% with advertising down 18%, with digital revenue down 16.1%.
But “data-driven revenue” grew to 41% of digital from 35% a year ago and 24% in 2019.
9.15am: UK debt costs highest in developed world, says Fitch
The UK is on track to incur the highest debt interest costs in the developed world this year as persistently high inflation and an unusually large proportion of government bonds linked to price rises damage the public finances, according to a new report.
Credit ratings agency, Fitch estimates the Treasury will spend £110bn on debt interest in 2023, which at 10.4% of total government revenue, would be the highest level of any high-income country.
It would be the first time the UK has topped the data set which goes back to 1995.
Roughly a quarter of UK government debt is in the form of so-called index-linked bonds, whose payouts fluctuate in line with inflation, making the country a huge outlier internationally.
Italy has the next highest share with 12% of its bonds tied to inflation, while most countries have less than 10%.
“We’ve had a very large inflation shock which is adversely affecting the public finances and that is obviously a key driver of the sovereign credit rating,” said Ed Parker, global head of research for sovereigns and supranationals at Fitch.
The agency reiterated in June its negative outlook on the UK’s double A minus credit rating, citing “the UK’s rising government debt and uncertain prospects for fiscal consolidation”.
8.58am: WANdisco plunges on return from suspension
WANdisco PLC shares have slumped 96% in early exchanges after returning from suspension.
The UK and US software group was rocked by financial irregularities at the firm earlier this year which saw shares in the company suspended on AIM.
The beleaguered Sheffield-based firm needed to raise US$30mln to shore up its finances which it did, issuing around 47.5mln shares at a price of 50p per share, a huge discount to the 1,310p price at the time of suspension.
In March, the firm said it has discovered "significant, sophisticated and potentially fraudulent irregularities" with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee.
It found 2022 revenue should have been US$9.7mln and not US$24mln as previously reported.
The revelations led to the departures of the previous chief executive and CFO.
Today, shares are trading at 50.25p, just above the placing price.
8.32am: Unilever "juggernaut rumbles on"
Unilever sits at the top of the FTSE 100 risers after its well-received half-year results.
Richard Hunter at interactive investor, commented: “The Unilever juggernaut rumbles on, sweeping aside any inflationary worries through the sheer scale of its pricing power."
"There have been concerns that an increasingly cost-conscious consumer would switch to the cheaper, own-brand products of rivals, but this appears only to be happening at the margins," he said.
"In normal circumstances, significant price rises would be accompanied by large declines in volumes as customers move elsewhere.
"For Unilever, however, with its suite of household names, this has simply not been the case," he added.
"The feared exodus of consumers following the price increases was also expected to hamper margins, but Unilever has reported that underlying operating margins have increased by 0.1% to 17.1%, ahead of the expected number of 16.4%," Hunter said.
Shares are now up 5.1% at 4,220p while the FTSE 100 has slipped back to its opening levels, up just 3 points, at 7,681.
8.15am: Miners support FTSE 100
The FTSE 100 has made a solid start to proceedings boosted by gains in mining stocks taking heart from measures by Chinese authorities to support the world's second-largest economy.
Hpes that the actions taken will boost demand for resources led to strong gains for miners such as Glencore PLC (LSE:GLEN), up 1.8%, Anglo American, up 4.2%, Rio Tinto Ltd, up 3.4%, and Antofagasta PLC (LSE:ANTO), up 3.4%.
At 8.15am, London’s blue-chip index was up 14.06 points, 0.2%, at 7,692.65 while the FTSE 250 eased 22.89 points, 0.1%, to 19,122.09.
Unilever PLC (LSE:ULVR) rose 3.3% as it reported better-than-expected second quarter growth alongside half-year results.
Underlying sales growth in the six months to June 30 was 9.1%, driven by all business groups, with 9.4% price growth and a 0.2% drop in volume.
In the second quarter underlying sales growth of 7.9% beat a company-compiled consensus of 6.4%.
“Our billion+ Euro brands, accounting for 55% of Group turnover, delivered underlying sales growth of 10.8%, led by strong performances from Rexona, Hellmann's, OMO, Sunsilk and Lux,” Unilever said in a statement.
Emma-Lou Montgomery at Fidelity Personal Investing’s share dealing service said: “From Tresemmé to Dermalogica and back to Dove, a determined focus by shoppers all over the globe on personal care has seen sales rise at Unilever.”
“There’s no doubt that higher prices are boosting Unilever’s coffers, with the company acknowledging that volumes were virtually flat, aside from the Beauty & Wellbeing and Personal Care businesses.”
But Compass Group PLC (LSE:CPG) was out of favour with shares down 3.3% after its update.
Analysts at Barclays said: “Overall a fine update though investors may have been looking for slightly more from this release so could see shares off a touch today.”
7.52am: Compass backs guidance as revenue grows
Another FTSE 100 firm updating investors is Compass Group, the food services company, which reported strong growth in third-quarter revenue as it reiterated full-year guidance.
Organic revenue in the three months to 30 June rose 15% compared to the same period a year earlier, and by 21% in the year-to-date, a statement said.
As a result, Compass held full-year guidance and expects to deliver operating profit growth towards 30%, organic revenue growth of around 18% and an underlying operating margin between 6.7% and 6.8%.
Longer term, Compass said it expects to sustain mid-to-high single-digit organic growth, with plans to reward shareholders with returns.
7.43am: 888 names new CEO
888 Holdings PLC (LSE:888) has named a new chief executive only days after a plot by activist investment group FS Gaming to take control of gambling company failed.
The owner of William Hill and Mr Green has appointed Per Widerstrom who will take the helm in October.
Widerstrom has more than 17 years of experience in the online gaming industry, having most recently held the position of CEO at Fortuna Entertainment Group, 888 said in a statement.
Lord Mendelsohn, executive chair of 888, commented: “The board unanimously agreed that Per was the clear standout candidate to lead the Group to build on the strong platform for growth and value creation that has been established.”
FS Gaming, a consortium of former Entain PLC executives, has built a 6.57% stake in 888 with the intention of installing a new leadership team.
But last week, 888 announced an end to those discussions due to an ongoing investigation by HMRC of Entain for various historical offences, including bribery.
888 itself has had a troubled year including a record fine for William Hill from the gambling watchdog and a prove into its Middle East operations after failing to protect consumers and for weak anti-money laundering controls.
The latter prompted the departure of the previous CEO, Itai Pazner.
7.27am: Unilever sales growth supported by rising prices
A busy day of company news. Unilever PLC (LSE:ULVR) reported rising prices continued to support sales growth in the first half of 2023 led by strong performances by its billion+ Euro brands.
The maker of Ben & Jerry’s ice cream and Dove soap said underlying sales growth in the six months to June 30 was 9.1%, driven by all business groups, with 9.4% price growth and a 0.2% drop in volume.
In the second quarter underlying sales growth of 7.9% beat a company-compiled consensus of 6.4%.
“Our billion+ Euro brands, accounting for 55% of Group turnover, delivered underlying sales growth of 10.8%, led by strong performances from Rexona, Hellmann's, OMO, Sunsilk and Lux,” Unilever said in a statement.
Looking ahead, Unilever forecast another year of strong underlying sales growth despite “a volatile and high-cost environment.”
“We expect underlying sales growth for the full year to be above 5%, ahead of our multi-year range, with underlying price growth continuing to moderate through the year,” it said.
The results were the first under the stewardship of the company's new chief executive, Hein Schumacher who said: “My early immersion in the business has confirmed my belief in Unilever's strong fundamentals."
7.00am: Subdued start seen in London
London’s blue chips are set to make a muted start to proceedings as the City awaits a hefty batch of updates from some leading names of the business world.
Spread better IG is calling the FTSE 100 to open just 5 points lower on Tuesday after closing up 14.86 points, at 7,678.59 on Monday.
In London, updates are expected from Unilever, Croda, Reach, Compass, Games Workshop and Mitie as the earnings season swings into gear while across the pond, earnings from Alphabet and Microsoft will be released.
Adding in the start of the two-day FOMC meeting in the US and there is plenty to grab the attention of investors.
Ahead of that meeting US equities advanced on Monday with the Dow Jones notching up its 11th straight day of gains. The S&P 500 and Nasdaq also rose.
The US central bank is widely expected to lift interest rates by 25 basis points.
"But what Fed officials will also do is to remind investors that the tightening cycle is probably not over and that there will probably be another rate hike on the US' horizon. So yes, there is a great chance that the Fed will spoil your mood if you are among those thinking that this week's rate hike will be the last for this tightening cycle in the US," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
In Asia, markets were mixed with gains in China and Hong while in Tokyo, the Nikkei 225 eased.