The UK benchmark index is headed for another flat start this morning, amid talks of US rates interest hike and ongoing Brexit negotiations.
IG’s Opening calls predict the UK benchmark index will open this morning 0.16 per cent down at 7562 points. The Footsie closed yesterday with a minor increase of 0.11 per cent, achieving a final total of 7574.24p.
Federal Reserves interest rate will impact global market
Minutes from the latest Federal Reserve meeting indicate that the US central bank intends to maintain its steady interest rates hike which will no doubt have an impact on the global market.
Whilst no official rates have been set, the CME FedWatchTool indicate that there is a greater than 90% chance the hike will be announced at the next Federal meeting scheduled for 26th September 2018. The raise will mean a stronger dollar, the ripples of which will be felt across the board in all markets.
Ongoing Brexit negotiations cause European investor hesitancy
The ongoing negotiations seem to have led to hesitancy in the European markets with both the DAX and the CAC closing on values that were relatively low in comparison to values seen at the start of this week. The DAX closed on 12385.7 (+0.1) and the CAC on 5420.61 (+0.22), a huge contrast to the previous days close values of 12384.49 (+0.43%) and 5408.6 (+0.54%)
CRH in focus
In focus today will be Irish building group, CRH Plc (LON:CRH), predicted to announce like-for-like first half sales in their interim report. The group recently announced initiatives to improve cash generation and its margins, is also expected to make further announcements with regard to its future infrastructure.
As well as CRH’s interim report, ex-dividends will be announced from Imperial Brands, Carnival, Croda International, London Stock Exchange, Mondi, Paddy Power Betfair, RBS and Prudential.