FTSE 100 preview: Footsie to mirror subdued global markets trend

on Jan 28, 2016

Britain’ benchmark index is expected to open in negative territory today following a mixed to negative trend set in Asia and Wall Street overnight.

The FTSE 100 closed yesterday’s session 78.91 points higher at 5,990.37, as an increase in oil prices spurred a rebound from declines earlier during the day. According to estimates, the Footsie will shed some 36 points this morning, kicking off at 5,954, after a lacklustre lead from its global counterparts. Markets in Asia were mixed overnight, but largely trimmed earlier losses, despite a lower finish on Wall Street after the Federal Reserve appeared to temper its expectations for US economic growth.

The US central bank opted not to raise interest rates at its January meeting, as expected, and gave no indication that it was changing course on its rate-hiking path ahead. However, in its post-meeting statement, the Fed tweaked its view of the US economy, noting that growth had slowed, business investment has moderated and inventory investment has decelerated.
While digesting the Fed statement, investors will also eye the UK fourth-quarter gross domestic product (GDP) data, due out at 09:30 GMT. Analysts expect GDP grew 1.9 percent in final three months of the year compared to a year ago, easing back from the 2.1 percent increase recorded in the third quarter. However, on a quarter-on-quarter comparison, GDP is projected to rise 0.5 percent, up from 0.4 percent in the third quarter.
On the corporate front, the City anticipates interim trading update from spirits maker Diageo (LON:DGE), miner Anglo American (LON:AAL), energy company SSE (LON:SSE) and private equity firm 3i Group (LON:III).

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