FTSE 100 preview: Lacklustre start after ECB decision

The FTSE 100 looks set to start the last trading day of the week little changed, with investors continuing to mull over central bank policies. On the corporate front, investors will digest results from Vodafone (LON:VOD).

Muted start ahead

IG’s opening calls suggest that the FTSE 100 will start trading 0.05 percent higher at 7,493 points. In the US, shares fell last night amid speculation that the Federal Reserve might not be as dovish as anticipated next week after the European Central Bank (ECB) held off on easing rates.

CNBC reports that Gregory Faranello, head of US rates at AmeriVet Securities, thinks that he  both central banks will be aggressive in their stimulative measures, however. He noted the ECB is “throwing the kitchen sink at their current economic situation”.

“This is clearly setting the stage for what we’re going to see next week from the Federal Reserve,” he added, as quoted by the newswire. “We’re in an environment in which central banks are defending their home turf.” Asian shares have tracked the US lower this morning.

In the UK, the Footsie fell marginally in the previous session, giving up 12.41 points to end trading 0.17 percent lower at 7,489.05, as investors digested a string of corporate updates along with the ECB rate decision. AstraZeneca (LON:AZN) was the session’s biggest riser in percentage terms, closing more than seven percent higher, as lifted its product sales guidance.

Friday’s agenda

There are no major macroeconomic releases out of Europe to provide further guidance to the market this morning. In the US, the nation’s preliminary second-quarter results are due out at 13:30 BST. IG reports that growth is expected to come in at 1.9 percent quarter-on-quarter, from 3.1 percent.

Vodafone will post its first-quarter results after reporting a hefty full-year loss and having recently secured EU approval for its deal with Liberty Global. FTSE 100 publisher Pearson (LON:PSON) is also reporting today.