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FTSE 100 set for strong rebound

Last updated: 16:57 05 Nov 2014 AEDT, First published: 17:57 05 Nov 2014 AEDT

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Market volatility is set to continue this morning with London’s blue chips tipped to regain all of the ground lost yesterday.

Financial spread bet firms expects Footsie to bounce more than 40 points in early trading even though trading across the US and Asia was mixed overnight. The London market closed down 34 at 6,454 Tuesday.

US shares had a choppy session dominated by the weakness in oil prices.  Saudi Arabia’s move to cut crude prices in the US sent oil to a three-year low and took a heavy toll on oil stocks for a second day. Brent crude, meanwhile, hit a four-year low.

News that the Republicans have regained control of the US Senate after the latest round of mid-term elections came after the market closed but on previous trends is set to give the market a boost today said strategists.

The Dow Jones Industrial Average closed 18 higher at 17,384, but there were losses for both Nasdaq and the S&P 500.

Asian markets were also mixed with Tokyo’s hot streak continuing and the Nikkei adding 75 points near the close. Hong Kong, fell, however, while there were mild losses in Shanghai.

Marks & Spencer will be the main piece of UK company news today.Marks & Spencer’s clothing division is likely to have been hit by the Indian summer Britain is enjoying, which has subdued sales of the autumn and winter collections at Next and SuperGroup.

Marks & Spencer has the additional burden of an underperforming online business, as the company makes changes to its web platform.

Investec is forecasting a fiscal second quarter like-for-like (LFL) sales decline of 3.3% on the General Merchandise side, which would represent a deterioration from the preceding quarter’s 1.5% year-on-year decline.

Food sales growth, for so long the bright spot, is also expected to turn negative.

Pub group JD Wetherspoon also reports.

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