FTSE 100 preview: Index to kick off week on cautious note

on Oct 26, 2015

The FTSE 100 is expected to start the week on a cautious note following Friday’s rally. According to estimates, the index will open 11 points lower at 6,433 points.

Global equities rose on Friday after the People’s Bank of China (PBOC) lowered its benchmark interest rates by 25 basis points, alongside announcing a half-percentage cut in the reserve requirement ratio (RRR), in a bid to jumpstart a slowing economy.The surprise move lifted risk assets, which had already been boosted by Thursday’s message from the European Central Bank (ECB) that it stood ready to enhance quantitative easing and cut interest rates to even deeper negative levels.
On the corporate front, investors anticipate today’s third-quarter trading update from advertising company WPP (LON:WPP). Also on the radar will be blue-chip defence company BAE Systems (LON:BAE), which has been hired by broadband provider TalkTalk (LON:TALK) to investigate a cyber-attack, which may have led to the theft of personal data from its more than four million customers, Reuters yesterday reported. Barclays (LON:BARC) is also making the headlines today, after suffering technical problems over the weekend. The bank admitted on Saturday that the “outage” had left some customers experiencing difficulties in accessing their accounts.
US equities closed sharply higher on Friday.The Dow Jones industrial average rose 0.9 percent to 157.54 points, the S&P 500 climbed 1.10 percent to 2,075.15, while the Nasdaq jumped 2.27 percent to finish at 5,031.86.
Asian stocks extended their Friday rally today. By 07:05 BST, the MSCI’s broadest index of Asia-Pacific shares outside Japan had advanced 0.06 percent to 532.97 points. Meanwhile, Tokyo’s Nikkei 225 was 0.65 percent up at 18,947.12.

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