Increased geopolitical tension as a result of the downing of a Russian military aircraft by a Turkish jet shouldn't dampen European equities, which are expected to open higher.
Britain's FTSE 100 index is expected to open 14 points higher at 6,291, the German Dax up 17 points at 10,950 and the French Cac up four points at 4,824.
Yesterday, investors piled into safe haven assets following Vladimir Putin’s strong worded remarks regarding the incident.
The Russian President called Turkey’s actions a "stab in the back" and accused the country of being an "accomplice of terrorists".
The Turkish lira fell sharply against the dollar throughout the day, with the greenback up 1 per cent at 2.877 lira at time of print. Equity markets recovered ground they’d lost on the immediate reaction to the news early yesterday morning, with the FTSE 100 blue chip index closing down 28 points.
In the UK, all eyes will be on Chancellor George Osborne today, as he delivers the Spending Review and the Autumn Statement to parliament. He's widely expected to announce more budget cuts in order to fix public finances.
- Thomas Cook reported its first profit in five years, with profit after tax of £19m in the 12 months ended 30 September.
- Meggitt has completed its acquisition of the advanced composites businesses of Cobham for $200m.
- United Utilities revenue was broadly flat at £875m in the six months ended September 30, mainly because last year was impacted by the special discount applied to customer bills.
- US, initial jobless claims, 1.30pm
- US, durable goods orders, 1.30pm