(Alliance News) - Stock prices in London are seen opening higher on Tuesday amid mixed trading in Asian equity markets overnight, as a European Central Bank-led forum in Portugal continues.
IG futures indicate the FTSE 100 index is to open 15.08 points higher at 7,273.40. The index closed up 49.51 points, or 0.7%, at 7,258.32 on Monday.
Stocks have attempted to rally as investors speculate that the US Federal Reserve may not have to be as aggressive in raising interest rates as earlier thought as it fights to control inflation.
In Asia on Tuesday, the Japanese Nikkei 225 index was up 0.4%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was down 0.7%. The S&P/ASX 200 in Sydney was up 0.7%.
"Equities are trying to rally off the morning lows - with incrementally positive headlines around Covid out of China and month-end positioning dynamics supporting this week's bounce," said Stephen Innes at SPI Asset Management.
The highlight for markets on Tuesday will be ECB President Christine Lagarde's speech at the Sintra Forum at 1000 CET and focus will be on any hints about the bank's new anti-fragmentation tool. At its previous meeting, the ECB laid out plans to create a new tool to tackle the risk of eurozone fragmentation.
Conclusions from the G7 summit also will be in focus, especially any concrete proposals as to how to resolve the global cost-of-living crisis and implement a possible cap on the price paid for Russian oil.
New York ended lower on Monday, with the Dow Jones Industrial Average off 0.2%, S&P 500 down 0.3% and Nasdaq Composite down 0.7%.
Nike late on Monday posted annual growth, thanks to a strong performance at Nike Direct and improved margins, despite a weaker fourth quarter.
For the financial year that ended May 31, the sports apparel maker said revenue grew 5% year-on-year to USD46.71 billion from USD44.54 billion. This was driven by double-digit growth in Nike Direct, partially offset by a slight decline in wholesale revenue.
Net profit grew 6% to USD6.05 billion from USD5.73 billion, as diluted earnings per share increased to USD3.75 from USD3.56.
The pound was quoted at USD1.2272 early Tuesday, down from USD1.2303 at the London equities close Monday.
The euro was priced at USD1.0575, down from USD1.0608. Against the yen, the dollar was trading at JPY135.40 in London, higher against JPY135.19.
Brent oil was quoted at USD116.50 a barrel Tuesday morning, up sharply from USD114.74 late Monday. Gold stood at USD1,826.05 an ounce, rising against USD1,822.51.
Tuesday's economic calendar has Irish retail sales at 1100 BST and US consumer confidence at 1500 BST.
The UK corporate calendar on Tuesday has full-year results from money transfer service Wise and safety and regulatory compliance services and software firm Marlowe. ICG Enterprise Trust releases first quarter results and Petrofac puts out a trading update.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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