FTSE 100 preview: Index to track US lower amid monetary policy concerns

on Mar 8, 2017

The UK benchmark index looks set to open marginally lower this morning, taking cues from the US and Asia where stocks have retreated amid monetary policy concerns. On the corporate front, AstraZeneca (LON:AZN) has disclosed a significant rise in last year’s pay package of its chief executive Pascal Soriot.

IG’s opening calls suggest that the Footsie will start the day eight points lower at 7,331. The blue-chip index is likely to take cues from the US where stocks slipped last night amid prospects of tighter monetary policy, with the Federal Reserve expected to hike rates this month. Asian shares have also lost ground this morning, tracking the US lower.
CNBC reports that market expectations for a rate hike stood around 85 percent yesterday, according to the CME Group’s FedWatch tool. The US central bank’s monetary policy committee is scheduled to meet between March 14 and March 15.

The Footsie closed little changed yesterday, shedding 11.13 points to end the session 0.15 percent lower at 7,338.99, with investors digesting a string of corporate releases. Intertek (LON:ITRK), which posted a rise in full-year revenues, was the session’s biggest riser in percentage terms, closing 4.76 percent higher.
There are no major macroeconomic releases out of Europe to provide direction this morning. In the afternoon, the US ADP payroll report for February is scheduled to be released at 13:15 GMT. IG reports that 180,000 jobs are expected to have been created, down from 245,000 a month earlier. On the corporate front, Admiral Group (LON:ADM) and Legal & General (LON:LGEN) are scheduled to update investors on their full-year performance. In other news, AstraZeneca revealed yesterday that the pay package of its chief executive Pascal Soriot had jumped by nearly 70 percent last year.

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