FTSE 100 preview: Index seen steady after upbeat US lead

on Sep 11, 2015

The UK benchmark index looks set to recoup some of yesterday’s losses this morning, taking cues from the US where stocks closed in positive territory, boosted by a bounce in the oil price. The FTSE 100 was subdued in the previous session, extending earlier losses, after the minutes from the Bank of England’s (BoE) latest policy meeting buoyed sterling.

CNBC reports that the FTSE 100 is expected to open 32 points higher at 6187. US stocks closed higher last night, finding support in stronger oil. Gains, however, were capped with investors remaining cautious ahead of the Federal Reserve’s policy meeting next week.
“I think a lot of this is volatility awaiting the Fed meeting,” said Marc Chaikin, CEO of Chaikin Analytics, as quoted by CNBC. “There’s some good leadership in the market along with Apple and that’s always comforting to traders.” Shares in Apple (NASDAQ:AAPL) recovered from losses posted earlier during the week when the tech giant unveiled new products. Asian stocks have advanced this morning, tracking the US higher.

At home, the Footsie lost 73.20 points to close 1.18 percent lower at 6,155.81. The blue-chip index traded in negative territory on the back of downbeat economic numbers out of China and Japan, extending losses in afternoon trade after the minutes from the BoE’s latest policy meeting showed that monetary policy makers thought it was too early to tell whether the turmoil in China would impact the UK. The minutes sent sterling to a two-week high, weighing on London-listed stocks with international exposure and exporters.
There are no major macroeconomic announcements out of Europe this morning. The US producer price index (PPI) for August is due out at 13:30 BST. No FTSE 100 companies are scheduled to update investors on their recent performance.
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