17th Aug 2015 06:00
LONDON (Alliance News) - Stocks in London are called to open higher Monday, rebounding from the heavy losses last week caused by China's devaluation of the yuan and the fall in oil prices.
IG says futures point the FTSE 100 to a higher open at 6,590.9. The index closed down 0.3% at 6,550.74 on Friday with oil-related stocks dragged down by the falling price of crude.
Oil prices continue to remain under pressure ahead of the open Monday, with West Texas Intermediate trading at USD41.91 a barrel and Brent oil trading at USD48.55 a barrel. WTI hit a six and a half year low last Thursday at USD41.65 a barrel.
On Friday, Eurozone finance ministers approved the third bailout package in five years for Greece, which will commit to reforms and spending cuts in return for EUR86 billion in aid. Some of the countries in the eurozone, including Germany, require their parliaments to be consulted on the new bailout. Others that do so are Austria, Estonia, Portugal and Spain. Greece's Parliament approved it Friday.
On Wall Street Friday, the DJIA and the S&P 500 both closed up 0.4% and the Nasdaq Composite ended up 0.3%.
In Asia Monday, the Japanese Nikkei is up 0.4%, the Hang Seng trades down 0.9% and the Shanghai Composite is down 0.2%.
The Japanese economy shrank at an annualized rate of 1.6% in the April-to-June period for the first contraction in three quarters due mainly to weak exports and sluggish consumption, the government said. The figure was slightly better than the 1.9% contraction forecast in a poll of economists by the Nikkei business daily.
In the UK corporate calendar, half-year results from housebuilder Bovis Homes Group and shipping services company Clarkson are expected before the UK market open.
In the economic calendar, there is eurozone trade balances data at 1000 BST, US Empire State Manufacturing Survey at 1330 BST, and US National Association of Home Builders housing market index at 1500 BST.
By Neil Thakrar; [email protected]; @NeilThakrar1
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