LONDON (AFX) - Leading shares are tipped to open marginally higher today following a solid rise yesterday and a positive days trade across the Atlantic, dealers said.
Spread-bettors IG Index sees the FTSE 100 index opening roughly ten points higher at 5,725.
At the end of a choppy session yesterday, the FTSE 100 index closed up 63.5 points at 5,715.5, bouncing back after having hit an early low of 5,591.5.
Wall Street ended higher Wednesday, wrapping up a weak month on a positive note, but the S&P 500 put in its worst May in 22 years in a market plagued by worries over inflation, slowing economic growth and uncertainty over the outlook for interest rates.
The Dow Jones Industrial Average rose 73.88 points on Wednesday to 11,168.31.
The Nasdaq Composite rose 14.14 points to 2,178.88. For May, the tech-rich index tumbled 6.2 pct, its worst May performance since May 2000, when it shed 11.9 pct.
The Nasdaq Composite Index suffered its worst May performance in six years.
Meanwhile, the minutes from the May 10 FOMC meeting showed inflationary pressures in the US economy were worse than anticipated and core inflation was rising to what some members saw as an unacceptable rate.
The minutes also showed that the FOMC members had considered a 50 basis points rate increase for the first time in six years.
Overnight in Asia, Japan's Nikkei Index ended the morning up 141.37 points at 15,608.70 while Hong Kong's Hang Seng ended early trade down 16.69 points at 15,841.20.
Remaining in Asia, oil prices were firmer in late morning as concerns over Iran's nuclear ambitions came to the fore again, despite a US offer of conditional but direct talks with Tehran officials on the issue, dealers said.
New York's main contract, light sweet crude for July delivery was up five cents at 71.34 usd a barrel from its close of 71.29 usd in the US yesterday.
Brent North Sea crude for July delivery was at 70.38 usd, down three cents.
Oil fell 74 cents in late New York trade Wednesday after US Secretary of State Condoleezza Rice made an offer of direct talks to be held with Iran if Tehran were to halt nuclear enrichment.
In London interims are expected from API Group, Standard Life Euro-Trading.
Meanwhile, Vedanta Resources, the copper and aluminium miner, is expected to report today a 124 pct rise in earnings, crossing the 1 bln usd-mark for the first time, bolstered by sky-high metal prices and increased production.
Also reporting, Johnson Matthey is predicted to show a rise in annual earnings today, buoyed by strong platinum prices and higher deliveries to Asia.
Analysts estimate year to March pretax profit to grow to anywhere between 215 mln stg and 224 mln stg, giving a consensus figure of 218.5 mln, from the 204 mln posted last time.
Investors in South West Water owner Pennon Group will be interested to hear whether the company's waste division has identified any fresh acquisition targets when it reports its final results today.
The group said at the time of its half-year results in December that the unregulated waste unit, Viridor Waste Management, was in the market for buys to add to the eight acquisitions that it had made in the last three years.
Elsewhere, Water and power group United Utilities should report strong growth in full-year profits, led by price rises under the new price controls in its regulated business.
Analysts expect the Warrington-based company to unveil pretax profits of 470-495 mln stg against 400 mln stg the year before.
In other company news Electrocomponents looks set to report a slump in full-year earnings, with profits adversely impacted by systems implementation costs and difficult trading conditions in the UK.
Pretax profit is expected to be in the range of 63-73 mln stg, against 100 mln stg the previous year.
A dividend cut -- to 2.5 pence from 4.5 -- is on the cards at UCM Group. In September, the provider of speciality fused minerals turned in interim pretax profits of 1.16 mln stg against 1.40 mln and warned of break-even in the closing half.
On the economics front UK May manufacturing sector PMI are expected at 09.30 am. newsdesk@afxnews.com bk/nes COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2006 AFX News
