The FTSE 100 is predicted to continue its strong start to the week on Tuesday with mining earnings in the morning and the Wall Street’s return from the long weekend to provide another potential impetus later.
London’s blue chip equity index has been called 25 points higher on the IG spread-betting platform with an hour and a half to go.
This comes on the back of its stonking rise of over 166 points or 2.5% to 6,756.11 a day earlier, even with the US on holiday.
Asian markets are mostly edging higher this morning, with the Nikkei 225 in Tokyo having closed above 30,000 for the first time since 1990 and continuing to make gains as the Bank of Japan said it is not stopping its ongoing quantitative easing programme.
The Footsie’s oil heavyweights could provide an uplift as cold weather sweeping the United States caused rolling power blackouts, a massive spike in electricity spot prices, and further boosted oil prices.
“With US markets closed for President’s Day yesterday, they will have some significant catching up to do after yesterday’s stellar European session, when they return from their long weekend later today,” said market analyst Michael Hewson at CMC Markets.
He added: “Having underperformed so much in recent weeks, the potential for a FTSE100 retest of its January peaks and a move towards 7,000 could well increase as long as we see a continuation of the type of progress that we’ve been seeing so far on the vaccine front, and the continued sharp fall in Coronavirus infection rates.”
Around the markets
Pound: up 0.2% to US$1.3935
Oil: up 0.3% to US$63.50
Gold: up 0.25% to US$1,823.35
Bitcoin: up 3% to US$48,973.49
6.50am: Early Markets – Asia / Australia
Stocks in the Asia-Pacific region were higher on Tuesday as markets in mainland China remain closed for the Lunar New Year holiday.
The Hang Seng index in Hong Kong surged 1.77%.
In Japan, the Nikkei 225 jumped 1.28% while South Korea’s Kospi was 0.52% higher.
Shares in Australia rose, with the S&P/ASX 200 closing 0.70% higher.
Proactive Australia news:
Alkane Resources Limited (ASX:ALK) (OTCMKTS:ALKEF) (FRA:AK7) has updated the mineral resource for San Antonio Deposit at its Tomingley Gold Project (TGP) in Central West New South Wales after an additional 37,000 metres of drilling.
Blackstone Minerals Ltd (ASX:BSX) (OTCMKTS:BLSTF) (FRA:B9S) continues to intersect massive sulphide vein (MSV) mineralisation in all drill holes subsequent to the maiden intersections at King Snake target of the Ta Khoa Nickel–Copper-PGE Project in Vietnam.
ioneer Ltd (ASX:INR) (OTCMKTS:GSCCF) has completed a joint automation study with Caterpillar, the world’s largest manufacturer of construction and mining equipment and the Cat dealer for Nevada, Cashman Equipment Company, targeting the early introduction of Cat® Command.
Sipa Resources Limited (ASX:SRI) (FRA:SPO) has executed a sale and purchase agreement with Miramar Resources Ltd (ASX:M2R) to acquire the Garden Gully Project in the Murchison district of Western Australia for $150,000 in cash and shares.