FTSE 100 preview: Index seen lower ahead of Fed Chair speech

FTSE 100 preview: Index seen lower ahead of Fed Chair speech

The UK benchmark index looks set to open lower this morning, tracking the US lower, amid investor caution ahead of Federal Reserve Chair Janet Yellen’s speech tomorrow. On the corporate front, CRH (LON:CRH) is scheduled to update investors on its interim performance.

IG’s opening calls suggest that the Footsie will start the day 16 points in the red at 6,820. Investors are expected to stay on the sidelines ahead of tomorrow’s central bankers’ meeting in Jackson Hole, Wyoming. US stocks closed lower last night ahead of Yellen’s speech, while Asian shares have been mixed this morning.
“I don’t think the Fed will want to introduce market volatility in the run-up to the G20 meeting and she might strike a more neutral stance on interest rate policy,” Gao Qi, an FX strategist at Bank of Nova Scotia in Singapore, told Reuters, referring to a summit of G20 leaders in China in early September. CNBC meanwhile quoted Ray Attrill, global co-head of foreign exchange strategy at the National Australia Bank, as commenting that the bigger talking point at Jackson Hole should be the effectiveness of already stretched monetary policy in tackling a new downturn.
In the UK, the FTSE 100 shed 32.73 points to end the session 0.48 percent lower at 6,835.78, dragged down by miners which tracked metals prices lower. Randgold Resources (LON:RRS) was the biggest Footsie faller in percentage terms, shedding 5.05 percent to close at 7,615.00p.
Today’s macroeconomic releases include the German IFO business climate survey for August, due out at 09:30 BST. On the other side of the Atlantic, US durable goods orders for July are scheduled to be released at 13:30 BST, followed by the nation’s preliminary Markit services purchasing managers’ index for August at 14:45 BST. CRH is the only blue-chip company scheduled to update investors on its recent performance this morning.
FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend in today’s session, include Carnival (LON:CCL), Dixons Carphone (LON:DC), Hammerson (LON:HMSO), London Stock Exchange Group (LON:LSE), Prudential (LON:PRU) and Taylor Wimpey (LON:TW). Reuters’ calculations suggest that ex-divs will knock 2.16 points off the Footsie.

By Alice Young
Alice joined the Invezz team after motherhood convinced her to make a career change from actuary-ing. She brings a forensic eye for detail developed through crunching numbers on underwriting satellite insurance and the like.
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