Proactive Investors - The FTSE 100 is expected to open higher extending Monday’s gains as the banking sector shows signs of stabilising and investors switch attention to monetary policy moves in the US and the UK.
Spread betting companies are calling London’s lead index by around 32 points.
US stocks advanced on Monday as the rescue of Credit Suisse (SIX:CSGN) allayed fears about bank contagion, while investors weighed odds of the Federal Reserve pausing its rate hikes this week.
On Wall Street, the Dow Jones Industrial Average closed up 382.60 points, or 1.2%, at 32,244.58. The S&P 500 gained 34.93 points, or 0.9%, at 3,951.57 and the Nasdaq Composite advanced 45.02 points, or 0.4%, at 11,675.54.
The Federal Open Market Committee kicks off its two-day meeting today with the interest rate decision tomorrow.
"Markets have become increasingly divided as to what the FOMC may well do when it comes to interest rates tomorrow, with opinions split between another 25bps hike, a pause, and a 25bps rate cut," said Michael Hewson, chief market analyst at CMC Markets.
"Assuming recent gains hold, and we get no further surprises then the odds still favour a 25bps rate rise, otherwise, the Fed runs the risk that it sends the message it is more concerned about financial stability than it is about its fight against inflation. A rate cut would send an even worse message that the Fed sees something the market doesn't and could spook already jittery markets even further."
In Asia, the Tokyo market was closed on Tuesday for the Vernal Equinox holiday. The Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was up 0.9%.
In London, full year results are due from DIY retailer Kingfisher (LON:KGF) while a trading statement is due from online food retailer Ocado (LON:OCDO).