London’s benchmark index was trading just 0.1% higher at 6,737 within the opening hour.

The Footsie had dropped 0.3 per cent on Monday after closing at a two-month high of 6,750.76 last week following a surprise interest-rate cut by the People’s Bank of China (PBoC).

Data released on Tuesday morning showed that Germany gross domestic product (GDP) growth was confirmed at 0.1 per cent for the third quarter, expanding by 1.2 per cent over the same period last year. The figures were in line with the initial estimates earlier this month, though the second-quarter contraction was revised to -0.1 per cent from -0.2 per cent.

In the UK, Bank of England governor Mark Carney is due to speak in London, while a report on loans for house purchases from the British Bankers’ Association will also be closely watched.

The second estimate for third-quarter US GDP is also due out later on, with analysts expecting the world’s largest economy to have expanded at an annual rate of 3.3 per cent, lower than the initial 3.5 per cent estimate.

The index for US consumer confidence is expected to increase to 96 in November from 94.5 a month earlier. Personal spending and house price figures will also be released in the States on Tuesday afternoon.

Kingfisher disappoints, oil and mining stocks slump

Shares in Kingfisher declined after the B&Q and Screwfix owner saw like-for-like (LFL) sales fall in the third quarter as decent growth in the UK and Ireland was offset by falling sales in its largest market, France. LFL sales declined 0.9 per cent, compared with 1.8 per cent growth in the first half.

Oil stocks were weak as Brent fell for a second straight day ahead of the pivotal OPEC meeting this week. According to reports, OPEC is looking to spare three countries – Iraq, Iran and Libya – from potential cuts to production. Shell, Tullow and BP were all trading lower.

Mining stocks were also out of favour as share prices continue to retreat after a PBoC-inspired rally last week. Anglo American, BHP Billiton, Fresnillo and Antofagasta were among the worst performers on the FTSE 100.

The Questor column in The Telegraph gave the mining sector a ‘sell’ rating on Tuesday, saying that companies’ earnings forecasts may yet have further to fall due to declining commodity prices, and promises of cash returns may fail to materialise.

First-half results from Severn Trent were broadly in line with expectations, though shares fell early on. The group said negotiations with regulator Ofwat about the upcoming price review will mean bringing forward extra capital expenditure into the second half.

Petrofac was extending losses after slumping by 26 per cent on Monday on the back of a profit warning. The oilfield services stock was under further selling pressure after analysts at Credit Suisse and Deutsche Bank downgraded their ratings on the stock.

Market Movers
techMARK 2,912.15 +0.33%
FTSE 100 6,737.24 +0.11%
FTSE 250 15,737.98 +0.18%

FTSE 100 – Risers
Sky (SKY) 915.50p +2.29%
Marks & Spencer Group (MKS) 485.40p +1.95%
BT Group (BT.A) 400.60p +1.65%
easyJet (EZJ) 1,571.00p +1.62%
Associated British Foods (ABF) 3,089.00p +1.18%
Shire Plc (SHP) 4,546.00p +1.13%
International Consolidated Airlines Group SA (CDI) (IAG) 439.70p +1.08%
Ashtead Group (AHT) 1,070.00p +1.04%
Standard Life (SL.) 417.40p +1.04%
HSBC Holdings (HSBA) 634.90p +1.00%

FTSE 100 – Fallers
Petrofac Ltd. (PFC) 841.50p -4.10%
Kingfisher (KGF) 295.80p -2.63%
BHP Billiton (BLT) 1,597.00p -1.48%
Anglo American (AAL) 1,334.50p -1.44%
Morrison (Wm) Supermarkets (MRW) 184.50p -1.34%
Tullow Oil (TLW) 497.50p -1.09%
Burberry Group (BRBY) 1,606.00p -0.74%
Royal Dutch Shell ‘B’ (RDSB) 2,362.50p -0.69%
BP (BP.) 444.15p -0.68%
Severn Trent (SVT) 2,049.00p -0.63%

Source: ShareCast