FTSE 100 preview: Index to open higher ahead of Fed meeting

on Oct 28, 2014
Updated: Oct 21, 2019

iNVEZZ.com, Tuesday, October 28: The UK benchmark index looks set for a mild recovery this morning ahead of the Federal Reserve’s two-day meeting. The FTSE 100 closed in the red yesterday, with cyclical stocks weighing on the benchmark index.

Lloyds Banking Group Plc (LON:LLOY) and BP (LON:BP) are scheduled to release third-quarter statements today.
**Index called higher**
According to IG, the Footsie is set to rebound from yesterday’s drop, opening 19 points higher at 6382. In the US, stocks were little changed yesterday, while Asian equities were mixed this morning ahead of the Fed meeting due to start later today.

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“With the end of the asset purchase programme a foregone conclusion, speculation is once again mounting about the movement of interest rates,” Evan Lucas, market strategist at IG, said in a note. “The most watched two words in the financial world – ‘considerable period’ – continue to dominate financial commentary and The Street.”
The FTSE 100 closed 0.40 percent lower at 6,363.46 yesterday, with growth-sensitive cyclical stocks posting the most notable declines.

“The cyclicals are getting hit, and with the turmoil of the last few weeks, we’ve still got some turbulence to come,” Zeg Choudhry, managing director at Lontrad, told Reuters. “The way the market is swaying today is looking dangerous. I think we’ve still got a couple of hundred points of downside on the FTSE.”
Today’s macroeconomic calendar includes US durable goods orders for September, scheduled for release at 12:30 GMT, followed by the US Conference Board Consumer Confidence Index at 14:00 GMT.

**Lloyds, BP results in focus**
The Telegraph on Sunday quoted Deutsche Bank as forecasting profits of £1.9 billion at the 25-percent government-owned lender, up from £1.5 billion a year ago. Investors will also be eyeing any updates on how close the bank is to resuming dividend payments.

Other blue-chip companies scheduled to post results today include BP Plc (LON:BP) and BG Group (LON:BG). The Telegraph reports that analysts expect BP’s profits to come in at $3 billion (£1.9 billion), or a fifth lower than last year. 
Standard Chartered (LON:STAN) said this morning in a statement to the Hong Kong stock exchange, where it is also listed, that its third-quarter operating profit had dropped 16 percent year-on-year.


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