UK stocks are poised to extend the winning streak to three sessions after President of the European Commission Jose Manuel Barroso said he will present a plan to recapitalise banks, boosting confidence that the EU will prevent its debt woes from triggering a banking crisis.
The FTSE 100 is currently expected to open at 5,329, or 38 points (0.7 percent) above Thursday’s close.
Yesterday, the UK’s blue chip index surged 189 points, boosted by the Bank of England’s decision to extend its quantitative easing programme by £75 billion.
“Equity markets on the other hand are trying to pre-empt a possible recovery by rallying from their lows,” said chief executive of Capital Spreads Simon Denham.
“Markets are always forward looking and so not only do many investors see plenty of bargain stocks out there but they see possibly the buy of the century if Europe's problems are taken out of the equation.”
Today, the focus will be on the US, where the Labor Department will release its key non-farm payrolls report for September.
According to analysts polled by Bloomberg News, today’s figures will show that the US economy created 59,000 jobs last month.
Across the Atlantic, the Dow Jones Industrial Average (DJIA) surged 183 points (1.7 percent) to end the session at 11,123 and the broader S&P 500 index climbed 21 points (1.85 percent) to close at 1,165.
Asian stocks moved in the same direction as US equities today.
Japan’s benchmark Nikkei 225 index was 79 points (0.95 percent) higher at 8,601 just before close of play and Hong Kong’s Hang Seng added 526.5 points (3 percent) to reach 17,699 by the end of the session.