(Alliance News) - Stocks in London look set to shake off recent turbulence, and benefit from a buoyant mood across the globe on Tuesday.
IG says futures indicate the FTSE 100 index of large-caps to open up 50.1 points, or 0.7%, at 6,958.86 on Tuesday. The FTSE 100 index closed up 14.95 points, or 0.2%, at 6,908.76 on Monday.
Attention will be on the UK's new leadership, after a bruising U-turn on its tax cut plans, as the Conservative Party Conference continues.
Keynote speeches at the conference in Birmingham by Home Secretary Suella Braverman and Foreign Secretary James Cleverly will aim to set out the government's plans on immigration and commitment to support Ukraine.
Liz Truss will be keen to get the annual gathering back on track after she and Chancellor Kwasi Kwarteng abandoned their plan to scrap the 45% rate for earnings over GBP150,000 in an astonishing U-turn to stave off a Tory revolt.
The prime minister admitted that it had not been an "easy" week but indicated she was sticking with the rest of the tax-cutting package.
But in a sign of continuing disquiet among Conservative MPs, Priti Patel is set to accuse Truss and Kwarteng of "spending today with no thought of tomorrow".
"I want to see our party regain its credibility by restoring its commitment to sustainable public spending...which is affordable today, tomorrow and for the foreseeable future," the former home secretary will tell a conference fringe event, according to The Times.
Former Cabinet minister Michael Gove told Times Radio he would need "a lot of persuading" to stop benefits from rising in line with inflation, while former work & pensions secretary Damian Green told LBC that a freeze or cut in benefits would not get through the Commons.
Sterling continued its upward trajectory. The pound was quoted at USD1.1330 early Tuesday, higher than USD1.1309 at the London equities close on Monday.
The euro traded at USD0.9832 early Tuesday, slightly lower than USD0.9834 late Monday. Against the yen, the dollar was quoted at JPY144.83, higher versus JPY144.35.
In the US on Monday, Wall Street put in a strong performance. The Dow Jones Industrial Average closed up 765.38 points, or 2.7%, at 29,490.89. The S&P 500 closed up 92.81 points, or 2.6%, at 3,678.43. The Nasdaq Composite closed up 239.82 points, or 2.3%, at 10,815.44.
In Asia on Tuesday, the Japanese Nikkei 225 index was up 2.8%. In China, financial markets were closed for National Day Golden Week.
The Reserve Bank of Australia sought a "sustainable balance", as it raised the cash rate target by 25 basis points to 2.60% on Tuesday. The move was more than dovish than expected, given FXStreet-cited consensus had forecast that rates would increase to 2.85%.
Stocks in Sydney rejoiced, with the S&P/ASX 200 in Sydney closing up 3.8%.
Gold was quoted at USD1,700.09 an ounce early Tuesday, higher than USD1,690.38 on Monday.
Brent oil was trading at USD89.25 a barrel early Tuesday, higher than USD88.30 late Monday.
In Tuesday's UK corporate calendar, there is a trading statement from British bakery chain Greggs and half-year results from medical technology providers Inspiration Healthcare.
On the economic side, there's EU producer inflation at 1000 BST, and comments from US Federal Reserve officials later in the day.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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