FTSE 100 preview: Index called lower after weak China data
iNVEZZ.com, Monday, September 15: The FTSE 100 index is expected to open in negative territory this morning following weak Chinese data released over the weekend and ahead of the Scottish vote and the Federal Open Market Committee meeting in the US later during the week.
The Footsie closed marginally higher on Friday, helped by companies with exposure to Scotland, after the latest poll pointed to a narrow lead for the ‘No’ campaign.
**UK benchmark index called lower**
According to IG, Britain’s blue-chip index will open 31 points lower at 6785. China released data over the weekend showing that the nation’s August industrial output had climbed 6.9 percent year-on-year, with the result marking the slowest pace since 2008.
“The Chinese data was not ideal at all,” Mao Sheng, an analyst at Huaxi Securities Co in Chengdu, told Bloomberg.
China’s figures sent Asian stocks into the red this morning while in the US, stocks closed in negative territory on Friday with investors staying on the sidelines ahead of this week’s Fed meeting.
“US data is now consistently humming… this is causing mass speculation that a language change to the (Fed’s) statement is imminent,” IG market strategist Evan Lucas said in a note, forecasting that this week’s trading would be “heavily dependent” on the two-day policy meeting, which is scheduled to start tomorrow. The FOMC statement, due out on Wednesday, is expected to provide clues about the Fed’s monetary policy.
Concerns about Scotland’s referendum are also likely to impact market sentiment with polls suggesting that the result is too close to call. The vote will be held on Thursday, while the result is expected to be unveiled on Friday morning.
**SABMiller share price in focus**
Today’s macroeconomic data include July trade balance figures for the eurozone scheduled to be released at 10:00 BST and US industrial and manufacturing production figures, due out at 14:15 BST.
While there are no FTSE 100 companies scheduled to report today, shares in SABMiller (LON:SAB) are likely to be in focus after Heineken (AMS:HEIA) confirmed yesterday that it had rejected a takeover approach by the London-listed group.
The FTSE 100 closed 0.11 percent higher at 6,806.96 points on Friday, after a YouGov survey for The Times and Sun newspapers put Scottish support for continuation of the union at 52 percent, versus support for independence at 48 percent, excluding undecided voters.
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