(Alliance News) - Stocks in London are set to recover somewhat on Tuesday morning, with the Nikkei in Tokyo, which bore the brunt of Monday's sell-off, jumping higher.
IG says futures indicate the FTSE 100 to open up 75.1 points, 0.9%, at 8,083.33 on Tuesday. The index of London large-caps closed down 166.48 points, 2.0%, at 8,008.23 on Monday.
In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 2.6%, the S&P 500 down 3.0% and the Nasdaq Composite down 3.4%.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 8.0%, having fallen 12% on Monday.
Against the yen, the dollar was quoted at JPY146.04 early Tuesday, up versus JPY143.60 late Monday.
In China, the Shanghai Composite was down 0.3%, while the Hang Seng index in Hong Kong was down 0.1%. The S&P/ASX 200 in Sydney closed up 0.7%.
The global stock sell-off has fuelled calls for the US Federal Reserve to lower interest rates swiftly and decisively, with some analysts now calling for it to make an emergency cut before its September rate decision.
Fed Chair Jerome Powell signaled last week that the first rate cut could come "as soon as" September.
But some analysts fear that may not be soon enough, as the markets have responded in dramatic fashion to last week's below-target US jobs report, which raised fears that the US was entering a recession.
Sterling was quoted at USD1.2773 early Tuesday, higher than USD1.2759 at the London equities close on Monday. The euro traded at USD1.0950 early Tuesday, lower than USD1.0967 late Monday.
In Australia, the Reserve Bank of Australia left its benchmark rate unchanged, and warned "policy will need to be sufficiently restrictive" until it has more confidence inflation is waning.
The Australian central bank left the cash rate target unchanged at 4.35% and the interest rate paid on exchange settlement balances unchanged at 4.25%, as expected.
The RBA said although inflation has ebbed "substantially" since its peak 2022, data has proved price pressure is "persistent".
Gold was quoted at USD2,409.40 an ounce early Tuesday, higher than USD2,408.66 on Monday. Brent oil was trading at USD77.19 a barrel early Tuesday, higher than USD76.13 late Monday.
In Tuesday's UK corporate calendar, there will be half-year numbers from InterContinental Hotels Group, investment company abrdn and builders' merchant Travis Perkins.
On the global company calendar, there are quarterly results from the likes of Airbnb and Uber.
The economic calendar for Tuesday has German factory orders at 0700 BST, a UK construction PMI at 0930 BST and EU retail sales half an hour afterwards.
By Sophie Rose, Alliance News senior reporter
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