FTSE 100 preview: Index seen steady as Fed signals patience with rate hikes

The FTSE 100 looks set to start the last day of January marginally higher, as the US Federal Reserve signalled patience with rate hikes going forward. Investors have a lot to look out for on the corporate front today, with Royal Dutch Shell (LON:RDSA) and BT Group (LON:BT.A) scheduled to update investors on their performance.

Steady start ahead

IG’s opening calls suggest that the Footsie will start trading 0.07 percent higher at 6,947 points. In the US, shares rallied last night as the Federal Reserve kept interest rates unchanged and said that it would be ‘patient’ with hikes.

“It seems like the Fed is becoming more market dependent rather than data dependent,” said Jack Ablin, founding partner of Cresset Wealth, as quoted by CNBC. Asian shares meanwhile have tracked the US higher this morning.

At home, the Footsie extended this week’s rally, adding 107.70 points to close 1.58 percent higher at 6,941.63, with a fall in sterling in the wake of this week’s Brexit vote fuelling demand for blue-chips with international exposure.

Thursday’s agenda

Today’s macroeconomic statements include Germany’s unemployment rate for January, due out at 08:55 GMT, to be followed by flash fourth-quarter gross domestic product growth data for the eurozone at 10:00 GMT. In the US, investors will look out for Chicago’s purchasing managers’ index for January at 14:45 GMT.

In company updates, Shell is due to post its fourth-quarter and full-year results, while BT will update the market on its third-quarter performance, as outgoing chief executive Gavin Patterson prepares to hand over the reins to Philip Jansen. Other blue-chips reporting today include Unilever (LON:ULVR) and Diageo (LON:DGE).

There are no FTSE 100 companies whose shares are going ex-dividend in today’s session.