Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)
The UK 100 Index is called to open higher by 2pts at 6556pts after advancing 36pts yesterday driven by high beta constituents and recovering supermarkets.
Antofagasta (ANTO.L) added 3.82% after broker Sanford Bernstein reaffirmed a 'market perform' rating on the stock with a 900p target price, citing some 30% potential return.
Precious metal miners Fresnillo (FRES.L) and Randgold Resources (RRS.L) advanced 3.53% and 1.52%. Gold managed to climb above $1,200 a troy ounce.
Barclays' (BARC.L) cutting plan was well received, the shares added 3.43% on news the bank will cut 1,300 and install "smart ATMs" to automate sites.
The recruitment of two new non-execs at Tesco (TSCO.L), coupled with the shares trading at multi year lows, was enough to tempt bargain hunters. The shares increased in value by 2.67%. J Sainsbury (SBRY.L) and WM Morrison Supermarkets (MRW.L) added 1.6% each.
BREAKING NEWS - Rio Tinto (RIO.L) has said "no" to a mega merger with Glencore Xstrata (GLEN.L). Rio's New York listing (ADR) closed the session higher by 9% last night on hopes a deal was forthcoming.
US markets endured a subdued session, traders seemingly unsure whether to buy or sell after Friday's rampant session. The Dow Jones gained 200pts on Friday but shed 18pts yesterday as traders paused for breath.
Asian stocks registered shallow gains or losses. Rio Tinto shares climbed 4.3% in Australia as the ASX200 closed flat. The Hang Seng gained the most, up 0.5% as the Hong Kong government agreed to start formal talks with pro-democracy protesters.
Both Australia and Indonesia will keep key interest rates on hold at reviews today, according to economists surveyed by Bloomberg.
In FX, the yen held its biggest advance against the dollar since April as the Bank of Japan is projected to keep record stimulus unchanged today.
The dollar advanced against major peers, following its biggest decline in more than 12 months yesterday, as investors weighed the timing of the Federal Reserve’s first interest-rate increase since 2006.
Gold retreated after climbing the most in two months as the dollar advanced toward a four-year high but held above $1,200.
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Key Overnight Macro Data: (Source: Reuters/DJ Newswires)
- JP Coincident Index Worse
- JP Leading Index Worse
See Live Macro Calendar for full data line-up, incl. consensus expectations
UK Company Headlines: (Source: Reuters/DJ Newswires)
• Rio Tinto rejects Glencore merger approach amid iron ore slump
• Ferrexpo says total pellet production year-to-date up 2.6 pct
• Fresnillo completes buy of Newmont Mining's Penmont interest
• The Berkeley Group Holdings plc today announces that it has appointed Richard Stearn to its board as Finance Director
• Carillion awarded 75 mln pound contract for Dubai World Trade Centre
• Diploma buys 80 pct stake in Technopath Distribution
• Cairn discovers oil offshore Senegal