The UK benchmark index looks set to open marginally higher this morning, ahead of the Bank of England’s (BOE) rate decision. On the corporate front, Wm Morrison Supermarkets (LON:MRW) is scheduled to post interim results this morning.
IG’s opening calls suggest that the Footsie will start the day 0.09 percent higher at 7,386 points. The index is seen little changed as investors await the BOE rate decision.
“We believe it is highly unlikely that the MPC [Monetary Policy Committee] will raise rates in the next two years given ongoing Brexit uncertainties,” said Mike Riddell, a fixed income portfolio manager at Allianz Global Investors, as quoted by Reuters. “Nevertheless, it is possible that the MPC’s communications will attempt to jolt the market-implied rate higher.”
In the US, shares surged last night, finding support in the energy sector. Asian shares meanwhile have been subdued this morning following weaker-than-expected data out of China.
At home, the FTSE 100 shed 20.99 points to end the session 0.28 percent lower at 7,379.70, pressured by continued strength in sterling in the run-up to the BOE. Miners also weighed on the index, with Antofagasta (LON:ANTO) leading the sector lower and closing 3.87 percent in the red at 969.00p.
Today’s macroeconomic calendar includes UK retail sales data for August, out at 09:30 BST. The BOE rate decision is scheduled to be announced at 12:00 BST, while on the other side of the Atlantic, the US consumer price index for August is due out at 13:30 BST.
In corporate releases, Morrisons is expected to report that its sales rose in the first half of its financial year. Next (LON:NXT) is also scheduled to post results today. No blue-chip companies are scheduled to go ex-dividend in today’s session.