The focus is now turning to the European Central Bank policy meeting on Thursday with many expecting a reduction in its benchmark interest rate.

Market Analyst Craig Erlam from Alpari said that “it’s not unusual for investors to play it safe […] when expectations of a rate cut from the central bank are high”.

Also on Thursday will be the initial estimate of third-quarter US economic growth, while investors will keep their eyes peeled for the all-important jobs report in the States on Friday.

As for Wednesday, there will still be plenty of economic data for investors to digest, including industrial and manufacturing production figures in the UK, Eurozone retail sales and services data, German factory orders and US mortgage applications.

Credit-checking and information services firm Experian was a heavy faller this morning as investors gave a cool reaction to the acquisition of Passport Health Communications for $850m and its first-half results. The company experienced “subdued trading conditions” in some emerging markets but still managed to produce double-digit growth in earnings, it said.

easyJet gained after reporting a 5.4% rise in October passenger numbers, along with a 0.7 percentage point increase in its load factor. Rival airline IAG also gained as the sector rebounded following a profit warning from Ryanair earlier in the week.

Whitbread and BP were trading lower after going ex-dividend today, meaning that from today new investors won’t be able to get hold of the companies’ latest payouts.

Engineering and aerospace group Meggitt was in demand after Cantor Fitzgerald raised its rating on the stock to ‘buy’ and lifted its target price from 520p to 590p.

Insurance company Lancashire was lower after seeing profits fall by 67% in the third quarter as a quiet wind season in the US was outweighed by losses from hail storms and floods in Europe.

Sector peer RSA Insurance was still in the red following its gloomy third-quarter trading update yesterday which sent the stock tumbling. Even an upgrade by Nomura to ‘neutral’ didn’t give the stock a lift today.

Meanwhile, earnings guidance for the full year was lifted by a bullish Moneysupermarket.com Group after a “very strong” start to the fourth quarter boosted by energy-switching customers irked by utility price hikes. The stock jumped by 14% in morning trade.

Source: ShareCast