(Alliance News) - Stocks in London are set to open are expected to add to Monday's gains, as sentiment continues to recover amid easing Middle Eastern tensions.

IG says futures indicate the FTSE 100 to open up 42.6 points, 0.5%, at 8,066.47 on Tuesday.

The index of London large-caps closed rose 128.02 points, 1.6%, at 8,023.87 on Monday, this marked a new closing high. It achieved an intraday high of 8,044.98 on Monday, a touch off its best-ever level.

Stocks in London got a boost on Monday, after a member of the Bank of England's interest rate-setting committee said he thinks UK inflation could return to the target level and stay there for longer than the central bank's own predictions.

Dave Ramsden said the UK is no longer an "outlier" but a "laggard" when it comes to its inflation performance, meaning it is slowly but surely catching up with international peers including the US and the eurozone.

This week, eyes are on both personal consumption expenditure price index and gross domestic product data in the US. These may yield hints about the US Federal Reserve's potential interest rate cuts.

The GDP data is out on Thursday, followed by the PCE index on Friday.

In the economic calendar on Tuesday, there is a flash of PMI data due out. It will come from the UK, Eurozone, Germany, and the US.

Japan's business activity growth picked up speed in April, according to preliminary survey data.

The au Jibun Bank flash composite purchasing managers' index rose to 52.6 points in April from 51.7 in March. The expansion was led by services, with the flash services PMI rising to 54.6 from 54.1. Meanwhile, manufacturing rose closer to the neutral 50-point score, coming in at 49.9 in April from 48.2 in March.

Australia's private sector growth accelerated to a two-year high in April, initial survey findings suggested.

The Judo Bank flash composite PMI increased to 53.6 from 53.3 in March. Services continued to expand at a strong pace, but slowed marginally from the prior month.

The flash services PMI eased to 54.2 from 54.4. Meanwhile, the downturn in manufacturing softened, with the flash PMI jumping to 49.9 from 47.3.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.2%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was up 1.8%. The S&P/ASX 200 in Sydney closed up 0.3%.

Sterling was quoted at USD1.2346 early Tuesday, higher than USD1.2336 at the London equities close on Monday.

The euro traded at USD1.0652 early Tuesday, higher than USD1.0642 late Monday. Against the yen, the dollar was quoted at JPY154.77, flat versus JPY154.78.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.9% and the Nasdaq Composite up 1.1%.

Gold was quoted at USD2,308.90 an ounce early Tuesday, lower than USD2,337.50 on Monday.

Brent oil was trading at USD87.32 a barrel early Tuesday, higher than USD86.92 late Monday.

In Tuesday's corporate calendar, there is a trading statement from housebuilder Taylor Wimpey, as well as miner Anglo American. There are also half year results from Primark owner Associated British Foods.

By Sophie Rose, Alliance News senior reporter

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