FTSE preview: Shares up; Diageo, Kazakhmys

By Reuters
Updated: 02:51 EDT, 26 August 2010

The FTSE 100 expected to rise today thanks to US gains overnight and with UK corporate earnings coming from companies including Kazakhmys and Diageo.

Market watcher: Shares are seen rising.

The UK blue chip index looks set to gain between 43 to 47 points, or as much as 0.9%, according to financial bookmakers, after it fell to a seven-week closing low on Wednesday - down 46.55 points, or 0.9%, at 5,109.40.

US stocks staged a comeback on Wednesday, breaking a four-day losing streak by major indexes, as key technical support triggered bargain hunting that offset weak economic data.

Data showed new single-family home sales slumped to a record slow pace in July and orders for manufactured durable goods rose far less than anticipated.

And Asian stocks rose on Thursday as investors hunted for bargains among recently beaten-down shares, while the yen pulled further away from 15-year highs as investors wondered whether Japanese officials would take fresh steps to curb the currency's strength and spur economic growth.

In terms of domestic economic data, investors are waiting for August's UK CBI distributive trades survey, scheduled for release.

Italian oil major Eni Spa would consider buying BP assets in which it already has a stake if they were put up for sale, Italian daily Il Sole 24 Ore said on Thursday, citing Eni CEO Paolo Scaroni.

Also, BP's efforts to fish out pipe remnants inside equipment atop its blown-out Gulf of Mexico well delayed retrieval of a failed blowout preventer, the top official overseeing the oil spill response said.

BHP Billiton's chief executive flies to North America this week to crank up the charm offensive with Potash Corp shareholders after dousing expectations he would sweeten a $39bn bid for the fertilizer giant.

Korea National Oil Corp said it had posted offer documents to Dana Petroleum shareholders as it pressed ahead with its hostile takeover bid for the British firm.

There will be updates today from Kazakhmys, Diageo, Amec, Secro, G4S, Carillion, CPP Group, Filtrona, Hikma Pharmaceuticals, Imi, International, Petropavlovsk, Premier Oil, Salmander, Savills, Unite Group and William Hill.