Share prices in Europe were rising early Tuesday, following strong sessions in the US and Asia overnight, while in London, the reversal of most of the mini-budget measures was continuing to improve sentiment.
The gilt market remained in focus. The Financial Times reported that the start of the bond sales by the Bank of England, part of the central bank's quantitative tightening programme, may be delayed beyond the end of this month. The BoE had already shifted the start of a sale of £838 billion worth of gilts to the end of October from October 6.
The FTSE 100 index was up 71.79 points, or 1.0%, to 6,992.03 on Tuesday morning.
The FTSE 250 was up 133.59 points, or 0.8%, at 17,636.43. The AIM All-Share added 7.07 points, 0.9%, at 794.73.
The Cboe UK 100 opened 1.0% higher at 698.51, the Cboe UK 250 added 0.7% to 15,097.55, and the Cboe Small Companies traded 0.1% higher at 12,403.21.
In European equities on Tuesday morning, the CAC 40 in Paris and DAX 40 in Frankfurt both rose 1.1%.
In Asia, the Shanghai Composite ended down 0.1%, though the Hang Seng in Hong Kong was 1.6% higher in late trade. The Nikkei 225 in Tokyo rose 1.4%, while the S&P/ASX 200 in Sydney surged 1.7%.
The Bank of England temporarily stepped into the bond market to buy gilts, which are UK government bonds, in response to the mini-budget late last month. This had spooked financial markets and eventually led to the departure of Kwasi Kwarteng as chancellor last week.
The appointment of Jeremy Hunt, who then reversed most of the policies, has stabilised markets somewhat. Yields remain wider than they were ahead of the mini-budget, however.
The yield on the 30-year gilt ended at 4.37% late Tuesday, compared to 3.78% prior to the mini-budget. The yield on the long-dated bond narrowed further to 4.37% around 0840 BST on Tuesday morning.
The pound edged back below the $1.14 mark. Sterling fetched $1.1326 early Tuesday UK time, down markedly from $1.1409 late Monday.
UK Prime Minister Liz Truss will hope openly apologising for 'mistakes' in her tumultuous early premiership will pacify restless Tory colleagues as she seeks to fight on for another day in number 10.
She will rally her Cabinet at a meeting on Tuesday, following an informal reception with senior ministers over drinks and nibbles in Downing Street on Monday evening.
Truss has suggested she believes she can weather the storm that has rocked the party in recent weeks, as she vowed to lead the Tories into the next general election.
'It is worth pointing out that the 10-year gilt yield is still about 46 [basis points] higher than prior to the announcement of the mini-budget (something which is being dubbed the 'moron premium'), commented Rabobank, adding: 'It is likely to take quite some time before UK PLC regains all of its former investor appeal.'.
The euro traded at $0.9845 early Tuesday in London, up from $0.9810 late Monday. Against the yen, the dollar improved to JP¥149.00 from JP¥148.77.
In London, WPP shares rose 2.8%, among the best of the FTSE 100 members. Smaller peer S4 Capital added 2.0%.
Both were benefiting from a positive read-across from Paris-listed peer Publicis, whose shares were up 2.4%.
In the third quarter of 2022, Publicis said revenue increased 24% to €3.24 billion from €2.62 billion.
It now expects full-year organic growth of 8.5%, lifted from previous guidance of a 6% to 7% rise.
Fortunes of advertising companies are seen as a barometer for the economy. During downturns, corporates often slash advertising budgets to keep a lid on costs.
Back in London, Ibstock shares rose 5.4% after it said it traded ahead of expectations in the third quarter.
The manufacturer of clay bricks and concrete products now expects annual results 'to be above our previous expectations'. In the third quarter of 2022, clay sales volumes were 'marginally' higher year-on-year, while its performance in concrete was in line with expectations.
'Our strong trading in the first half of the year continued through the third quarter, supported by robust demand across our end markets. We remain focused on serving our customers, through providing high quality, sustainable products and solutions to create much-needed homes and spaces across the UK,' Chief Executive Joe Hudson said.
888 shares slid 5.7% as the gambling operator reported 'continued pressure' on its UK arm.
Revenue in the third quarter of 2022 amounted to £449 million, down 7.2% from £484 million a year earlier.
UK online revenue alone dropped 13% year-on-year to £171 million.
'Revenues during the third quarter continued the trends we have seen in recent quarters, with relatively resilient trading across our main international markets and in our retail estate, but continued pressure on our UK online revenues in light of the ongoing impact of the enhanced player safety measures,' Chief Executive Itai Pazner said.
Among London small-caps, finnCap jumped 25%. It has received a non-binding takeover proposal from peer Panmure Gordon.
The proposal consisted of a cash portion or an alternative which would see electing shareholders receive Panmure Gordon stock.
The stockbroker said talks with Panmure are at an early stage, and there is no guarantee a firm offer is forthcoming.
A barrel of Brent oil rose to $92.20 early Tuesday from $91.70 late Monday. An ounce of gold fell to $1,653.49 from $1,661.00.
In the international economics events calendar on Tuesday, there is a US industrial production reading at 1415 BST.
In the US, the quarterly earnings season rolls on. There are results from Goldman Sachs, Johnson & Johnson, United Airlines and Netflix.
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