FTSE 100 preview: Downbeat start in wake of central bank moves

The FTSE 100 looks set to start the last trading day of the week in negative territory, with investors continuing to mull over decisions by central banks around the world. In company news, Royal Bank of Scotland Group (LON:RBS) has appointed a new chief executive.

FTSE 100 seen lower

IG’s opening calls suggest that the Footsie will start trading 0.48 percent lower at 7,321 points. In the US, shares were mixed last night in the wake of monetary easing by the Federal Reserve and the European Central Bank earlier in the week. Asian shares meanwhile have advanced this morning.

“Investors are starting to price in the possibility of re-acceleration in the global economy next year. So far this month China has taken steps to support the economy, and US and European central banks eased policy,” said Nobuhiko Kuramochi, chief strategist at Mizuho Securities, as quoted by Reuters, adding that there are also “hopes of an interim or partial trade deal between China as US President Trump will need to shore up the economy next year before the election”.

In the UK, the FTSE 100 surged in the previous session, gaining 42.37 points to end trading 0.58 percent higher at 7,356.42 as investors mulled over the Bank of England’s move to stand pat on rates. In individual movers, Next (LON:NXT) was the session’s biggest fallers in percentage terms, giving up 5.67 percent as its interims failed to cheer investors.

Friday’s agenda

There are no major macroeconomic releases out of Europe to give further direction to the market this morning. In FTSE 100 company news, RBS has announced the appointment of Alison Rose to the top job. Rolls-Royce Holdings (LON:RR) meanwhile continues to be plagued by issues related to its Trent 1000 engines, while Smiths Group (LON:SMIN) has posted its full-year results.