London pre-open: Europe expected to pare back Monday's losses

25th Aug 2015 07:20

(ShareCast News) - City sources predict the FTSE 100 will open 56 points higher than Monday's close of 5,898.87.Following a volatile US session, Tuesday may see a let up in the wave of selling in recent days, CMC Markets UK chief market analyst Michael Hewson said."Despite this prospect of further losses seems highly probable unless we get a material change in sentiment over the next few days, or commodity prices show signs of finding a base."Investors will be looking in Beijing's direction to see how long it takes for Chinese authorities to take further action to support either the economy or the market, Hewson said.Data to be released on Tuesday included final second quarter GDP numbers from Germany which was expected to be confirmed at 0.4%, while the latest German IFO number for August was expected to show a slight weakening from 108 to 107.60.Stocks to watchThe UK competition regulator has provisionally given approval for Poundland Group to acquire rival 99p Stores Ltd. The Competition and Markets Authority gave provisional clearance for the deal, which will create a combined network of around 800 UK stores but, crucially, is not expected to result in a substantial lessening of competition for consumers due to the thriving competition in the sector.RSA Insurance has received a revised proposal from Zurich Insurance regarding a possible all cash offer for the company at 550p per share. Under the terms of the proposal, which came in just before the expiry of a takeover panel deadline, RSA shareholders will retain the right to receive the 3.5p interim dividend announced on 6 August.Antofagasta posted a drop in core first-half earnings as revenue fell on the back of declining copper and by-product prices and shipment delays. For the six months ended 30 June, earnings before interest, tax, depreciation and amortisation were down 48.6% from the first half of 2014 at $561.6m, as revenue slid 31.4% to $1.79bn. Earnings per share, meanwhile, came in at 8.8 cents, which is a 72% drop from the same period last yearIn the pressA tumultuous fall in Chinese equities dubbed "Black Monday" by Xinhua, the official state news agency, triggered a ferocious sell-off in international markets yesterday as fear spread of the potential impact of slowing growth in China on the global economy. The market turmoil appeared to reduce the chances of the US Federal Reserve lifting interest rates next month and could even spur it to keep them on hold until 2016. - The Financial TimesA collapse in the value of Chinese shares sent tremors through stock markets yesterday, triggering the ugliest day of global trading since the depths of the financial crisis eight years ago. Billions of dollars were wiped off the value of indices across the world in a day of frenetic selling during which the Shanghai composite plunged 8.5pc, its worst daily fall since 2007. - The Daily TelegraphSterling and the dollar took a pounding on currency markets yesterday as speculation mounted that central banks in Britain and the US would respond to the stock market rout by freezing interest rates until well into next year. The pound suffered its most volatile trading day against the euro in six years as traders quashed any idea of the Bank of England lifting the cost of borrowing from its record low of 0.5 per cent this year. - The Times