FTSE 100 preview: Index to open higher as Nikkei rebounds

on Nov 18, 2014
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iNVEZZ.com, Tuesday, November 18: The FTSE 100 Index is seen opening higher today, following a rebound in Japanese equities during a mixed Asian trading session.

US stock markets closed little changed, but the S&P 500 edged a bit higher, enough to notch up another record close.
In yesterday’s trading session, Britain’s blue-chip index closed 0.26 percent, or 17.6 points, higher at 6,671.97. Comments from the European Central Bank’s (ECB) president Mario Draghi helped soothe concerns about the global economy, which had intensified after yesterday’s sell-off in Japan. Speaking to the European Union’s Parliament, the ECB’s head said that the banks governing council remains “unanimous in its commitment to using additional unconventional instruments if needed”. Draghi added that these measures might include “the purchase of a variety of assets, one of which is sovereign bonds”.
According to spread bettor IG, the Footsie will open around 27 points higher today.
*h*US, Asia*h*
Draghi’s comments yesterday also helped to offset a slight sell-off in the US, spurred by the disappointing Japanese growth figures. This allowed the S&P 500 to edge up 1.5 point to another record close of 2041.32 points. This was the index’s 42nd record close of the year.
“This global uneven economic activity probably means that central banks are going to stay the course and that remains favorable for the equity markets,” Peter Cardillo, chief market economist at Rockwell Global Capital, commented as quoted by CNBC.

The Nasdaq Composite Index fell 0.37 percent to 4671.00 points, while the Dow Jones Industrial Average rose marginally to 17647.75.
In Asia, Japan’s benchmark Nikkei 225 Index closed 2.18 percent higher today at 17344.06 points, recouping more than half of the losses seen in the previous trading session. However, Chinese equities, both in Shanghai and Hong Kong saw significant losses following weaker- than-expected new home prices data for October.

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*h*Data*h*
Today will offer plenty of economic data for investors to scrutinise. A raft of UK inflation data for October is to be released at 09:30 UTC, followed by the closely-watched German ZEW indicator of economic sentiment for November at 10:00 UTC. The ZEW indicator for the eurozone will also be released at 10:00 UTC.
In the US, inflation data for October is expected at 13:30 UTC.
In terms of corporate earnings reports, easyJet Plc (LON:EZJ), Prudential Plc (LON:PRU) and British Land Co Plc (LON:BLND) are scheduled to update the market today.

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