Anticipation continues to build over next week’s Opec meeting where some of the world’s largest oil producing nations should agree a plan to cut output. This is driving oil prices higher already and in turn is being seen as delivering much of the upside in the FTSE-100 during the early part of Tuesday’s session. As is invariably the case, it’s the more diversified commodity stocks like Rio Tinto that are seeing the bulk of the upside here, with the reaction at the pure energy firms rather more muted – although still positive.
Again we have a rather quiet day on the economic calendar ahead. The UK’s latest public borrowing figures will be released, although it’s tomorrow’s Autumn statement that will carry far more weight here. As opposed to highlighting the current state of affairs, it should give some real clues as to what happens next for the country’s economy.
Developments out of the US will also be worth watching with news that Donald Trump will withdraw the country from the Trans Pacific Partnership trade deal on day one of his presidency still to be interpreted by global markets. By all accounts this will shut US businesses out of lucrative deals in Asia, although the implications for European markets are still to be understood.