The FTSE 100 looks set to open little changed this morning, with investors eyeing the outcome of the US Federal Reserve’s latest policy meeting. WPP (LON:WPP) meanwhile is set for a stormy general meeting.
Footsie seen steady
IG’s opening calls suggest that the blue-chip index will start today’s session 0.04 percent higher at 7,707 points. In the US, shares closed little changed last night, with the summit between President Donald Trump and North Korea’s leader Kim Jong Un failing to prop up sentiment despite resulting in an agreement which aims at a ‘peace regime’ on the Korean peninsula. Asian shares meanwhile have been subdued this morning, with attention turning to the Fed meeting.
“With a rate hike almost fully priced in, the focus is on how many times the Fed will raise rates this year and next and how much beyond the levels it considers as neutral to the economy, or what they call the longer-run rates,” said Shuji Shirota, head of macroeconomic strategy group at HSBC Securities, as quoted by Reuters.
In the UK, the FTSE 100 fell in the previous session, giving up 33.62 points to close 0.43 percent lower at 7,703.81, pressured by a selloff in housebuilders.
Today’s macroeconomic releases include the UK’s consumer price index for May, due out at 09:30 BST. IG reports that prices are expected to have climbed 2.5 percent from 2.4 percent year-on-year, and 0.2 percent from 0.4 percent month-on-month. First-quarter employment numbers for the eurozone will be announced at 10:00 BST, while in the US, the nation’s producer price index for May is due out at 13:30 BST. The Fed rate decision will be announced at 19:00 BST, after the UK market closes.
On the corporate front, WPP will hold its annual general meeting today, with investors set to rebel over pay arrangements for its former chief executive Martin Sorrell who left the company earlier this year amid allegations of ‘personal misconduct’.