All eyes will turn to the US on Wednesday with a barrage of economic data to be released as speculation continues to mount over the Federal Reserve's monetary policy.
The Mortgage Bankers Association will unveil its latest figures on mortgage applications while another report will reveal pending home sales in the US.
It will follow on from Tuesday's data on home prices in the US which showed an increase in June. The S&P/Case-Shiller 20-City Composite Home Price Index rose by a seasonally adjusted 0.9% in June after rising by 1% in May. Economists had been expecting the index to show another 1% increase.
Policymakers have been watching data closely after the Fed said it would begin to scale back its $85bn per month in bond purchases this year as long as the economy continued to improve.
In Germany, GFK consumer confidence figures will be released on Wednesday, a day after a report showed an increase in business optimism in Europe's biggest economy. The Ifo index for business optimism rose to 107.5 in August from 106.2 in July, beating the consensus reading of 107.
On the company front Wednesday, 888 Holdings, G4S and Johnston Press will report interim results.
Wednesday August 28th
888 Holdings, Antofagasta, APR Energy, Candover Investments, Chime Communications, DRS Data & Research Services, G4S, Johnston Press, JSC Federal Grid Company of Unified Energy System GDR (REG S), Kenmare Resources, Paddy Power, Phaunos Timber Fund Ltd., Polymetal International, Randall & Quilter Investment Holdings (DI)
INTERIM EX-DIVIDEND DATE
Acencia Debt Strategies Ltd., African Barrick Gold , AZ Electronic Materials SA (DI), BlackRock World Mining Trust, British Smaller Companies VCT 2, Capital & Counties Properties , CRH, Devro, Glanbia, Glencore Xstrata, Greencoat UK Wind, Henderson Group, Inspired Energy, Kingspan Group, Legal & General Group, Low & Bonar, LPA Group, PPHE Hotel Group Ltd, Rights & Issues Inv Trust Income Shares, Robinson, Rotork, St James's Place, Tullow Oil, Ultra Electronics Holdings, Vesuvius, Wood Group (John)
QUARTERLY EX-DIVIDEND DATE
Canaccord Financial Inc., Canadian General Investments Ltd., Energy XXI (Bermuda) (Di), Premier Energy & Water Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
M3 Money Supply (EU) (09:00)
MBA Mortgage Applications (US) (12:00)
Pending Homes Sales (US) (15:00)
SPECIAL EX-DIVIDEND PAYMENT DATE
Premier Energy & Water Trust
Adams, Daejan Holdings, Development Securities, Iomart Group, Omega Diagnostics Group, Phorm Corporation Ltd (DI), Sphere Medical Holding, Talisman VCT
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trends Surveys (11:00)
FINAL EX-DIVIDEND DATE
Bloomsbury Publishing, Carclo, Cohort, Falkland Islands Holdings, First Property Group, Fletcher King, Park Group, Stagecoach Group