The FTSE 100 is expected to make a positive start on Tuesday, rallying for the second day on growing optimism about slowing the spread of coronavirus.
London’s big cap index was being predicted to start 55 points higher by spread betters, having closed up over 166 points, or 3.08%, at 5,582 the previous session.
Asian stocks are higher, led by the Shanghai Composite and the Nikkei 225 in Tokyo, while, overnight, Wall Street enjoyed a barnstorming rally, with the Dow Jones surging 1,627 points or 7.7% to just under 22,678.
The broader S&P 500 index rose 7% and the more tech-laden Nasdaq Composite gained 7.3% even though the coronavirus death toll in the US is expected to worsen in coming weeks.
However, numbers of new coronavirus cases and death rates dropped in Italy, Spain and France. Germany announced the previous day that it would be easing its lockdown later in the month after getting a grip on the spread of the virus, as well as saying it was planning a “limitless credit” facility for small companies.
In the UK, the overnight news was that Prime Minister Boris Johnson had been moved into intensive care as his coronavirus conditions were said to have worsened.
Financial markets showed their sympathy with a fall in the pound, though sterling was rebounding on Tuesday morning, up 0.5% to US$1.2288.
In Tuesday’s corporate news there are certain to be some coronavirus-related trading statements, as well as some planned updates, including from Plus500 Ltd (LON:PLUS), which has been one of the happy few companies that that seen its shares in positive territory through the coronavirus outbreak.
Today the online CFD broker will let investors know the effect on trading in the first quarter, having said last month that it has seen significantly increased levels of customer trading activity alongside strong momentum across all financial and operational metrics.
The provider of emergency repairs and heating services delivers has been allowed to remain open for business during the coronavirus lockdown – although it is prioritising emergency cases at the moment, with technicians wearing protective gear when visiting customers’ homes.
There is still likely to be some disruption to the business from the coronavirus pandemic and the government lockdown, even though it will still be expected to maintain a level of revenues.
Around the markets
Pound, up 0.5% to US$1.2288
Oil, up one dollar or 3% to US$34.03
Gold, up 1.7% to US$1636.60
Significant announcements expected on Tuesday 7 April:
Economic announcements: Halifax house prices, US JOLTS job report