London pre-open: Markets to pull back after strong surge
Markets are expected to open in the red on Tuesday morning after a strong surge the day before as investors turn cautious ahead of US inflation figures out later on.
City sources predict the FTSE 100 will open down 18 points from Monday's close of 6,522.2, as stocks pull back after a 1.3% jump the day before.
"Yesterday’s strong rebound in equity markets saw over half of last week’s losses wiped out in a single session, but stopped short of getting close to the high levels seen last Monday," said Chief Market Analyst Michael Hewson from CMC Markets.
"It would appear that some bargain hunting after two successive weeks of declines as well as a growing belief, possibly misplaced. that the Fed will do nothing this week saw European markets post some of the best one-day gains since October this year."
Hewson said many are hoping that below-par inflation in the States will keep the Fed on hold when it meeting concludes tomorrow, even though most other data seems to be pointing in the right direction.
"This is why today’s US consumer price index numbers could well be instructive in that regard with expectations that the November numbers could well see a rise from 1% to 1.3% on annualised basis."
Stocks to watch
WPP has purchased a 30% stake in strategic consultant Richard Attias & Associates. Richard Attias has helped to organise events such as the World Economic Forum in Davos, the Clinton Global Initiative, launch of the Euro in 2000, the 2008 Arab Strategy Forum and the APEC CEO Summit in Hawaii.
Construction group Costain has won a five-year £60m deal to repair bridges and stations for UK rail infrastructure provider Network Rail. The so-called framework contract involves civil engineering, track construction, power delivery, signalling, and mechanical and electrical works.
Satellite operator Inmarsat has bought Florida-based maritime communications group Globe Wireless as it hopes to enable a faster roll-out of its broadband network to the shipping market. The company said that the $45m purchase will "jump-start Inmarsat's ambitions to move beyond pure connectivity and offer solutions and managed services to the maritime market".
Transport company National Express said it remains on track to achieve full-year targets, buoyed by a robust performance from UK Coach and steady growth in UK bus, Rail and North America. "Trading continues to be encouraging. UK Coach in particular has seen strong revenue growth, driven by more passengers," said Chief Executive Dean Finch.