S&P Futures

DAX

Nikkei -66

Hang Seng+114

US stocks reached new multi-month highs on the back of solid earnings news to extend Monday's gains.

European chip stocks should rise after Intel and chip equipment maker Novellus Systems rose in extended-hours trading on Tuesday after they reported quarterly earnings.

The Body Shop swung from a loss to a first-half profit 9.1 million pounds thanks to cost savings and a strong performance in the America which offset tough trading in the UK.

Awaiting Data

GUS reported stronger-than-expected first half sales growth of 7% and said interim profits would exceed current market expectations. Despite fears that the hot summer months would have slowed down sales at Argos and Homebase.DS Smith paper, packaging and office products said it expected to report annual results broadly in line with expectations, despite a difficult trading environment.

Land Securities Britain's largest property firm said it had agreed to expand a contract with the government, which would result in 140 million pounds of additional income per year.

Body Shop International (I) PBT 27m exp. Reckitt Benkiser (Q3) Trading Statement

GUS Trading Statement

09.30 Sep Unemployment 5k exp. 09.30Aug Average Earnings 3m y/y 3.5% exp.

20.00 BOE Governor King Speaks in Leicester

Apple Computer (Q3), Coca Cola (Q3), Fannie Mae (Q3) General Dynamics (Q3), General Motors (Q3), Unisys (Q3), Genzyme (Q3), IBM (Q3), JP Morgan (Q3) Monsanto (Q3)

13.30 Oct Advance Retail Sales 0.2% exp. 15.30 Aug Leading Indicator 19.00 Fed Beige Book

Hennes & Mauritz (TS), Iberia (TS), ASML(Q3), Micronas (Q3), Thompson Multimedia (Q3)

Ex Dividend: Aero Inventory (2.3), BAE Systems (3.7), Camellia (20), Charles Taylor (3.27), Derwent Valley (3.3), Friends Provident, (2.5), Highbury House 0.26), Isotron (5.5), Johnston Press (2), LA Fitness (1), Linton Park (3), Morse (2.15), Newcastle United (2.04), Old Mutual (1.7), Regent Inns (3.36), Rolls Royce (3.18), S & U (8), Smiths Group (17.25), Spectris (4.05), Spirax-Sarco Engineering (6), TT Electronics (3.69), Tullow Oil (1), Unite Group 0.83), WPP Group (2.08)

David@FTSEDOW.com     www.FTSEDOW.com