Equities Indices

FTSE 100 preview: Fed Chair comments to lift Footsie

The FTSE 100 looks set to open higher this morning, finding support in comments by Federal Reserve Chair Jerome Powell which have fuelled demand for equities around the world. Lloyds Banking Group (LON:LLOY) will be in focus on the corporate front today, following a cyber security deal.

FTSE 100 seen higher

Reuters reports that Britain’s blue-chip index is seen opening 26 points higher at 7,557 this Thursday, according to financial bookmakers. The Footsie is likely to take cues from the US where shares rallied last night as Fed Chair Jerome Powell said in a testimony to the House Financial Services Committee that many Federal Open Market Committee  “saw that the case for a somewhat more accommodative monetary policy had strengthened”.

“I think it’s safe to say Powell has his dove hat on and a quarter [rate] cut is coming,” said Mike Loewengart, vice president of investment strategy at E-Trade, as quoted by CNBC. “What’s interesting though is how quickly Powell pointed abroad to support the case for a weakening economy. Because the reality is things are still pretty strong here at home—last week’s jobs numbers made that clear.” Asian shares have tracked the US higher this morning.

In the UK, the FTSE 100 closed little changed in the previous session, giving up 5.78 points to end trading 0.08 percent lower at 7,530.69.

Thursday’s agenda

Today’s macroeconomic releases include Germany’s final inflation data for June, due out at 07:00 BST. In the US, the country’s consumer price index for June will be announced at 13:30 BST. In FTSE 100 company news, the Financial Times reports that Lloyds has struck a deal with a cyber security start-up to help the UK’s biggest retail bank by customer numbers to comply with looming antifraud legislation. Reckitt Benckiser (LON:RB) meanwhile has reached a deal with the US to pay $1.4 billion to resolve to resolve a probe into the sales and marketing of Suboxone Film.

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