The FTSE 100 look set to start Wednesday on the front foot, following comments by Federal Reserve Chair Jerome Powell and amid the ongoing earnings season. In company news, Rolls-Royce Holdings (LON:RR) could start stockpiling key parts in preparation for Brexit.
FTSE 100 looking up
According to IG’s opening calls, the UK benchmark index will start the session 0.49 percent higher at 7,664 points. The Footsie is likely to take cues from the US, where shares rose last night with investors focusing on corporate news. CNBC meanwhile reports that Fed Chair Jerome Powell had said in testimony to the Senate Committee on Banking, Housing and Urban Affairs that he supports more rate hike given the ‘considerably stronger’ economic growth. Asian shares have tracked the US higher this morning following Powell’s comments.
At home, the Footsie rose in the previous session, adding 25.88 points to close 0.34 percent higher at 7,626.33, with investors starting to focus on company news amid the ongoing earnings season.
Today’s macroeconomic releases include the UK consumer price index (CPI) for June due out at 09:30 BST, to be followed by the eurozone’s CPI for June at 10:00 BST. In the US, the nation’s housing starts and building permits data for June will be announced at 13:30 BST.
On the corporate front, investors will eye results by easyJet (LON:EZJ) and Severn Trent (LON:SVT), while London- and Sydney-listed BHP Billiton (LON:BLT) posted record iron ore output for the financial 2018 year. In other news, The Times reports that Rolls-Royce could begin stockpiling key parts within months as Britain’s largest aircraft engine maker braces for a disorderly Brexit, while according to a report in Reuters, Lloyds Banking Group (LON:LLOY) plans to operate three subsidiaries in continental Europe after Britain leaves the EU.