26th Apr 2022 06:56
(Alliance News) - Stock prices in London are seen opening higher on Tuesday, reversing some of the sharp losses suffered at the start of the week.
Equities in Asia were largely higher, while in New York overnight, stocks received some M&A impetus.
In early corporate news on Tuesday, Asia-focused lender HSBC reported a first-quarter profit fall.
IG futures indicate the FTSE 100 index is to open 79.8 points, 1.1%, higher at 7,460.34. The blue chip index closed down 141.14 points, or 1.8%, at 7,380.54 on Monday.
"US and European futures are trading in positive territory as traders take advantage of lower prices by bagging bargains. In the past few days and weeks, we have seen a serious sell-off for the global equity markets, and the reality is that the concerns which broke the back of the bull rally are still intact. However, today, traders seem to be ignoring all those concerns," Avatrade analyst Naeem Aslam commented.
In Asia on Tuesday, the Nikkei 225 in Japan was 0.6% higher. The Shanghai Composite was up marginally, while the Hang Seng in Hong Kong was 0.9% higher. The S&P/ASX 200, playing catch-up after financial markets in Sydney were closed on Monday to mark Anzac Day, was down 2.0% in late trade.
The dollar was largely weaker early Tuesday. The pound rose to USD1.2756 early Tuesday, from USD1.2715 late Monday. The euro advanced to USD1.0732 from USD1.0715. Against the yen, the dollar climbed to JPY127.95 from JPY127.70.
In the US on Monday, the Dow Jones Industrial Average climbed 0.7%, the S&P 500 added 0.6% and the Nasdaq Composite rose 1.3%.
Twitter shares closed up 5.7%.
Elon Musk, the world's richest man, struck a deal Monday to buy the microblogging site for USD44 billion, capping a saga complete with hostile takeover threats before delivering him personal control of one of the most influential social media platforms on the planet.
The publicly traded firm will now become a private company owned by Musk, who negotiated a purchase price of USD54.20 per share, Twitter said.
"Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated," Musk said in a statement released by Twitter.
In early corporate news on Tuesday, HSBC reported a slump in profit in the first quarter but the expected rise in central bank interest rates in the coming months gives the bank confidence for future income generation.
In the three months to March 31, the Asia-focused lender recorded USD4.17 billion in pretax profit, down 28% from USD5.78 billion in the same period the year prior.
Total revenue in the first quarter dropped 4.1% to USD12.46 billion from USD12.99 billion.
In addition, profit was hurt by a net charge for expected credit losses, compared with a net release the year before.
The bank booked a USD642 million expected credit losses charge in the first quarter, versus a USD435 million release last year.
HSBC shares were down 2.7% in Hong Kong.
Brent oil was quoted at USD103.56 a barrel early Tuesday in London, up from USD100.33 late Monday. Gold stood at USD1,905.87, up from USD1,898.25.
The economic events calendar on Tuesday has UK public sector finance numbers at 0700 BST and US advance report on durable goods at 1330 BST.
The UK corporate calendar on Tuesday has interim results from Primark owner Associated British Foods and housebuilder Taylor Wimpey issues a trading statement.
By Eric Cunha; [email protected]
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