FTSE 100 preview: Index looking up as Fed leaves rates unchanged

The Footsie looks set to start the morning on the front foot as the US Federal Reserve left rates unchanged at the conclusion of its two-day policy meeting last night. Investors have an earnings-heavy day to look out for, with a string of blue-chips, including Lloyds Banking Group (LON:LLOY) and Royal Dutch Shell (LON:RDSA), scheduled to post results this morning.

IG’s opening calls suggest that the FTSE 100 will start the day five points higher at 7,457. The blue-chip index is likely to take cues from the US where shares closed mostly higher last night as the Fed left rates unchanged and said that it would start winding down its massive holdings of bonds ‘relatively soon’. Asian shares meanwhile have tracked the US higher this morning.

The FTSE 100 finished the previous session on a positive note, adding 17.50 points to close 0.24 percent higher at 7,452.32, with investors digesting a string of corporate releases. ITV (LON:ITV) was the session’s biggest gainer, closing 2.44 percent higher at 180.20p on the back of its half-year update.

On the macroeconomic front, the German GfK consumer confidence index for August is due out at 07:00 BST. In the US, the nation’s durable goods orders and the Chicago Fed index for June are scheduled to be released at 13:30 BST.

In corporate releases, Lloyds is likely to face questions over rumours that he could leave the Anglo-Swedish group for generics drugmaker Teva, alongside updating investors on the group’s performance.

Other companies reporting today include Diageo (LON:DGE), Sky (LON:SKY), British American Tobacco (LON:BATS), Anglo American (LON:AAL), RELX (LON:REL), Schroders (LON:SDR), Smith & Nephew (LON:SN), Glencore (LON:GLEN), Rentokil (LON:RTO) and St James’s Place (LON:STJ). SSE (LON:SSE) is the only blue-chip company whose shares will trade without the attraction of their latest dividend in today’s session, taking 2.55 points off the index, according to Reuters calculations.