Overview: the FTSE 100 is set to gain as much as 1% in early trade to extend the gains from Friday’s session, which saw the UK blue chip index tack on 0.3%. The market are cheering the news from Dubai, which seems to have found a resolution to its immediate debt problems, having secured a US$10 billion loan from fellow emirate Abu Dhabi to repay US$4.1 billion in debt that is due on Monday to provide the rest to cover state owned conglomerate Dubai World’s financing needs until 30 April 2010.
Travel companies were the top performers on Friday with Thomas Cook Group (LSE: TCG) and TUI Travel (LSE: TT) making it to the top three with gains of 3.9% and 3.4% respectively. Communications services group WPP (LSE: WPP) led the blue chips with a 4% advance.
Other notable risers included hospitality company Whitbread (LSE: WTB), miner Vedanta Resources (LSE: VED), credit information group Experian (LSE: EXPN) and precious metal miner Fresnillo (LSE: FRES), all of which added more than 3%.
Part-nationalised banks Royal Bank of Scotland (LSE: RBS) and Lloyds (LSE: LLOY) were the biggest fallers of the day with losses of 2.5% and 3.4%, respectively. London Stock Exchange Group (LSE: LSE) joined in with a 2.7% retreat. Hedge fund manager Man Group (LSE: EMG), Home Retail Group (LSE: HOME) and insurer Legal & General (LSE: LGEN) all added more than 1.5%.
The US stocks were mixed on Monday. While the Dow Jones Industrial Average added 0.6% and the broader S&P 500 index climbed 0.4%, the technology heavy Nasdaq composite posted a marginal gain.
Most Asian markets mostly gained this morning. Hong Kong’s Hang Seng rose 0.8%, while Japan’s benchmark Nikkei 225 declined marginally. Chinese stocks outperformed other Asian markets as the Shanghai composite index advanced 1.7% as oil stocks climbed.
Commodities
Oil prices continued their decline with January Brent Crude sliding to US$72.00/barrel, while US benchmark crude slipped below $70, settling at US$69.65/barrel.
Precious metals partially recovered from their recent freefall with gold climbing to US$1,126/oz, while silver and platinum rose to US$17.31/oz and US$1,433/oz, respectively.
Base metals were in decline. Copper and nickel retreated to US$3.09/lb and US$7.34/lb, while zinc remained at US$1.03/lb.
No major economic updates are due out today.