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Markets speculate cash injection by China

In mid-morning trading the FTSE 100 is up 70 points as there is speculation that the Chinese central bank will inject cash into the liquidity system.

Mining companies are the main benefactor from the speculation that the People's Bank of China will add liquidity to the interbank market. This is an effort to shake off suspicion that the country's economy is slowing down. 

Kingfisher, the largest home improvements retailer in Europe, hammered home a respectable increase in its annual profits and will return £200 million to it's shareholders. 

Royal and Sun Alliance is in the black after the distressed insurer announced plans to raise £773 million via a rights issue. The insurance firm wants to recapitalise it's books after it suffered losses in its Irish operation. 

UK inflation came in at 1.7%, meeting the market consensus, and was still below the Bank of England’s target; this will allow Mark Carney to keep monetary policy loose for the foreseeable future. 

The owner of Candy Crush Saga, King Digital Entertainment, is set to float on the New York stock exchange tomorrow; IG clients are anticipating the company will have a market capitalisation of $9 billion. 

Our clients are still hungry for Just Eat, which is set to go public in the near future. The firm hopes to raise between £700 and £900 million from the flotation and our clients are anticipating a market capitalisation of £1.25 billion. 

Alibaba is set to make IPO history when it goes public and IG clients are predicting the Chinese ecommerce group will have a valuation of $250 billion. 

In the US, we are expecting the Dow Jones to open 24 points higher at 16,300, as traders hope for intervention from the Chinese central bank. 

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