Overview: the FTSE 100 is expected to bounce back and recoup Friday’s losses with pre-trade projecting putting the UK blue chip index 35 points, or 0.6% higher following a loss of 0.4% in the previous day of trading. Stocks in the US posted gains after a mixed session on Friday, with the key indices recovering late in the day after slipping into the negative at midday.
The Dow Jones Industrial Average advanced 0.2%, while the broader Standard & Poor’s 500 index rose 0.6%. The technology heavy NASDAQ composite rallied 1.45% after computer technology corporation Oracle (NYSE: ORCL) and BlackBerry manufacturer Research In Motion (NYSE: RIMM) reported strong quarterly earnings.
Asian markets were mixed as Hong Kong’s Hang Seng index and Australia’s S&P/ASX 200 both slid 0.3% and South Korea’s KOSPI composite index shed 0.2%, while Japan’s Nikkei 225 climbed 0.4% to hit eight-week highs and China’s Shanghai composite index added 0.3%.
Commodities
Oil prices rose with February Brent Crude reaching US$74/barrel, while US light, sweet crude improved to US$74.66/barrel.
Precious metals slightly improved to recoup some of their recent losses. Gold returned to US$1,115/oz, while silver and platinum climbed to US$17.36/oz and US$1,433/oz, respectively.
Base metals climbed as copper reached US$3.12/lb, nickel rose to US$7.80/lb and zinc improved to US$1.08/lb.
No major economic updates are due out in the UK, while investors in the US will be expecting the Chicago Fed index for November. Portable power supplier Aggreko (LSE: AGK) will join the FTSE 100 today, taking the place of business services group Rentokil Initial (LSE: RTO), which has been relegated to the FTSE 250.
Aggreko rallied 7.8% on the news on Friday. Notable risers in the FTSE 100 included commercial property company Liberty International (LSE: LII), satellite communications company Inmarsat (LSE: ISAT) and investor Resolution (LSE: RSL), which all added nearly 2%. Medical devices manufacturer Smith & Nephew (LSE: SN) climbed 1.5%, while oil and gas engineering firm Petrofac (LSE: PFC), beverage group Diageo (LSE: DGO), another oil and gas stock Tullow Oil (LSE: TLW) and miner BHP Billiton (LSE: BLT) tacked on more than 1%. Asset management firm Schroders (LSE: SDR) added almost 1%.
Bailed out bank Lloyds (LSE: LLOY) led the fallers with a 4.7% slide. Fellow part-nationalised bank RBS (LSE: RBS) slid 3%, while another banking stock Barclays (LSE: BARC) was down 3.5%. Other notable fallers included heating and plumbing equipment manufacturer Wolseley (LSE: WOS) with a 4% loss, cruise operator Carnival Corporation (LSE: CCL) and hedge fund manager Man Group (LSE: EMG) with 3% declines as well as retailer Kingfisher (LSE: KGF) and communications services group WPP (LSE: WPP), which retreated 2%.