Intertek results solid, Entertainment One outlook positive

London open

City of London traders expect the FTSE 100 to advance by around 58 points when it opens on Wednesday, extending the gains of the previous day with sentiment boosted by a strong Wall Street session.

Stocks to watch

Intertek Group reported a "solid" calendar 2015 results, with the inspection and certification company's adjusted revenue rising by 3.5% to £2.17bn. The company's adjusted profit before tax was £319.2m, up 6.3%, and its diluted earnings per share were 140.7p, though on a statutory basis, however, sizeable write-offs saw the company make a loss before tax of £307.7m.

Ahead of the completion of its takeover of SABMiller, Anheuser-Busch InBev has agreed to sell the FTSE 100 company's stake in the world's largest beer brand for $1.6bn.

Entertainment One said although revenues slipped 3% as a strong performance in television was offset by lower film sales, underlying earnings before interest, tax, depreciation and amortisation were 15% higher on a reported basis. The distributor said the outlook for full year underlying earnings continued to be in line with expectations, delivering positive free cash flow.

Newspaper round-up

BlackRock, the world’s largest asset manager, has warned that Britain’s economy would be hit hard by a vote to leave the EU, with equities, sterling and the London property market all likely to suffer. In a gloomy report for clients, it also warns that David Cameron could lose control over his fractious Conservative party whatever the result of the June 23 referendum, adding to the uncertainty hanging over the UK economy. – Financial Times

George Osborne has hailed a £8bn rise in tax revenues from the UK's highest earners as a vindication of his decision to cut the 50p rate. The chancellor told MPs on Tuesday that the increase in tax take “completely defies the predictions” made by the Labour party when he reduced the 50p rate for those earning more than £150,000 to 45p in April 2013. – Financial Times

Moody's has warned it may downgrade China’s sovereign rating, a sign of increasing investor concern over the country’s rising debt and dwindling foreign exchange reserves. The US rating agency revised its outlook on China from stable to negative, the first major step on the country by a rating agency since Fitch downgraded its rating three years ago, the first cut since 1999. – Financial Times

Europe's deep economic malaise is the result of "deliberate" policy choices made by EU elites, according to the former governor of the Bank of England. Lord Mervyn King continued his scathing assault on Europe's economic and monetary union, having predicted the beleaguered currency zone will need to be dismantled to free its weakest members from unremitting austerity and record levels of unemployment. – Telegraph

US close

It was risk-on for US stocks on Tuesday as they rose to their highest finish since the first week of January as better-than-expected data joined hands with steadying oil prices.

Even with oil weak initially, all three indices started strongly and by the close the S&P 500 spiked 2.37% by the close, its best ever start to March, while the Dow Jones Industrial Average climbed 2.11% for its best start since 2002, according to Dow Jones data.

The Nasdaq composite surged 2.9%, its best one-day performance since last summer and its best start to March since 2013.