FTSE 100 preview: Index looking up after ECB meeting

The FTSE 100 looks set to open higher this morning, tracking the US and Asia higher, with the European Central Bank’s (ECB) stimulus helping boost investor sentiment. On the corporate front, London Stock Exchange (LON:LSE) is set to decide on Hong Kong Exchange’s tie-up bid.

FTSE 100 seen higher

IG’s opening calls suggest that the Footsie will start trading 0.23 percent higher at 7,362 points. The blue-chip index is likely to take cues from the US where shares rose last night on the back of trade news and the ECB policy meeting. Asian shares meanwhile have tracked the US higher. Markets in mainland China and South Korea, however, remained closed for a public holiday.

“Risk assets should find further support from accommodative policies, which are set to remain in vogue for some time, and not just in Europe as seen in the global easing trend,” said Esty Dwek, head of global market strategy at Natixis, as quoted by Reuters. “Nonetheless, we believe that trade uncertainty and growth concerns will not vanish, so any reprieve on either subject will be welcome.

The analysts added that they also believed that some earnings growth would be needed for equities to grind higher.

In the UK, the FTSE 100 closed little changed yesterday, inching 6.64 points to close 0.09 percent higher at 7,344.67 as investors digested the ECB monetary policy decisions.

Friday’s releases

There are no major macroeconomic statements out of Europe to guide the market further this morning. In the US, the nation’s retail sales data for August will be announced at 13:30 BST, to be followed by Michigan’s preliminary consumer confidence index for September at 15:00 BST. In FTSE 100 company news, Reuters reports that LSE’s board is set to meet in coming days to decide on the Hong Kong bourse’s surprise $39 billion takeover proposal.