The FTSE 100 is expected to open in positive territory for a second straight day as markets continue to rebound following the heavy falls seen in recent weeks.Selling had accelerated last week after the Federal Reserve confirmed its intention to 'taper' quantitative easing if economic data continues to improve. This impending withdrawal of liquidity - along with concerns about a slowdown in China - prompted a steep sell-off in the ensuing days, sending London's benchmark index on Monday to levels not seen since early January (6,029).After a strong recovery yesterday to 6,102, City sources predict the FTSE 100 will rise around 12 points after markets open this morning."The recent reaction in financial markets has to some extent been rather extreme and investors really need to grow up and smell the coffee and acknowledge that unlimited stimulus is not a sustainable model," said Senior Market Analyst Michael Hewson from CMC Markets.He said that the Fed discussing a potential 'taper' "does not necessarily translate into a tightening policy, irrespective of what bond yields are doing right now".Stocks to watchInsurance, savings and investment group Legal & General is to purhcase UK annuity buy-out firm Lucida for around £151m after identifying retirement solutions as one of its "five key themes for growth". Annuity sales at L&G were strong in the first quarter with record individual annuity premiums up 51% at £406m.British Airways has launched an inaugural 927m dollar publicly-traded bond issue, using aircraft as collateral. The airline's parent company International Consolidated Airlines Group (IAG), said the bond issue would allow the company to diversify its sources of funding.Distribution and outsourcing group Bunzl said overall trading remains in line with company expectations and is unchanged from its last update in April. At constant exchange rates group revenue growth for the six months ending June 30th is expected to be approximately 11% due to underlying revenue growth of about 2% and the positive impact of acquisitions. BC