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London pre-open: FTSE to bounce back after heavy losses

FTSE

London stocks were expected to open higher on Tuesday, rebounding from two days of heavy losses as the pound regained a little ground in Asian trade.

The FTSE 100 was set to open 58 points higher than Monday’s close at 6,040.

There are no major UK data due but the third release of first-quarter US GDP is at 1330 BST. S&P Case-Shiller house prices are at 1400 BST, while US consumer confidence is at 1500 BST.

EU leaders are due to meet in Brussels later on Tuesday, so investors will eye any developments from there as the issue of Brexit is likely to be in focus.

CMC Markets’ Michael Hewson said: “Later today Prime Minister David Cameron will be heading to Brussels to attend a meeting of EU leaders in the wake of last week’s vote and while his reception is probably likely to be chilly, there will probably also be some light hearted mentions of last night’s embarrassment on the football fields of France, as England lost to Iceland.

“Yesterday the Prime Minister announced he would not be triggering Article 50 of the Lisbon Treaty, and also ruled out the prospect of another referendum. Given the poisonous nature of the last one, that may be no bad thing. On the other side the EU issued a warning that talks on future relations could not begin until the request had been lodged in what could well turn out to be a cross channel staring contest.”

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Paul

The author Paul