Equities By Region Indices UK

FTSE 100 preview: Index to open lower after Fed rate hike

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The UK benchmark index looks set to open lower this morning after the US Federal Reserve moved to lift rates for the third time this year. On the corporate front, Twenty-First Century Fox has agreed to sell its 39 percent stake in Sky (LON:SKY) to Comcast.

Footsie to open lower

IG’s opening calls suggest that the FTSE 100 will start the session 0.22 percent lower at 7,495 points. In the US, stocks closed lower last night after the Fed raised interest rates as expected. The US central bank further dropped the word ‘accommodative’ from its monetary policy statement. CNBC reports that some traders took this to mean that if the Fed no longer believes its policy is accomodative, it's likely closer to being done with its rate hikes. Asian shares have tracked the US lower this morning.

At home, the Footsie was little changed yesterday, adding 3.93 points to end the session 0.05 percent higher at 7,511.49 as investors awaited the Fed rate decision.

Thursday’s calendar

Today’s macroeconomic agenda includes Germany’s GfK consumer confidence for October, due out at 07:00 BST, to be followed by the eurozone business confidence index for September at 10:00 BST, and Germany’s preliminary consumer price index for September at 13:00 BST. On the other side of the Atlantic, the final reading of the nation’s second-quarter gross domestic product, durable goods orders for August and personal consumption expenditure prices for the second quarter are all scheduled to be released at 13:30 BST, while the nation’s pending home sales for August will be out at 15:00 BST.

On the corporate front, TUI (LON:TUI) is scheduled to update investors on its recent performance this morning.

Blue-chips, whose shares will be trading without the attraction of their latest dividend in today’s session, include Hargreaves Lansdown (LON:HL), Wm Morrison Supermarkets (LON:MRW) and Smurfit Kappa (LON:SKG). Reuters’ calculations suggest that ex-divs will knock 0.83 points off the Footsie.

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