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FTSE 100 poised for higher open after oil and metal prices rise

The FTSE 100 is seen 0.6% higher after gaining 0.9% on Friday, taking its weekly advance to 1.6%.

In the US, the Dow Jones Industrial Average advanced 1.9%. The broader S&P 500 index surged 2.1% and the technology heavy NASDAQ composite rallied 2.3%.

Caterpillar (NYSE:CAT) led the Dow Jones constituents with a 4.5% rally. Aluminium producer Alcoa (NYSE:AA) was close, rising 4%. Bank of America (NYSE:BAC) and Boeing (NYSE:BA) added more than 3%.

Chipmaker ARM Holdings (LON:ARM) led the blue chips in the UK, rallying 6% on speculation that Oracle (NASDAQ:ORCL) is preparing to make a bid for the company. Fashion house Burberry (LON:BRBY) also added 6%. Commercial property company Hammerson (LON:HMSO) advanced 4.5%. Bank Standard Chartered (LON:STAN) and engineering company Invensys (LON:ISYS) added 3.5% each. Asset management firm Schroders (LON:SDR) and defence and aerospace systems manufacturer BAE Systems (LON:BA) tacked on just over 3%.

Base metal miner Antofagasta (LON:ANTO) was at the bottom of the pile with a 2.5% loss. Gold producer Randgold Resources (LON:RRS) declined 1.1%. No other FTSE 100 constituent lost 1% or more.

Asian markets were in buying mode today. Hong Kong’s Hang Seng climbed 1.3%, China’s Shanghai Composite Index rose 0.9% and South Korea’s KOSPI added 0.7%, while Australia’s S&P/ASX 200 and Japan’s Nikkei 225 surged 1.6%.

Commodities

Oil prices were on the rise with US light, sweet crude for November delivery reaching US$76.61/barrel.

Precious metals moved higher. Gold climbed to US$1,298/oz, while silver and platinum reached US$21.57/oz and US$1,643/oz respectively.

Base metals were unchanged. Copper and nickel stood at US$3.59/lb and US$10.34/lb, while zinc was at US$0.996/lb.

An update on the Chicago Fed index will be released in the US today.