Home ForexFTSE Buoyed by oil deal, FTSE 100 set to positive start on a positive note

Buoyed by oil deal, FTSE 100 set to positive start on a positive note

by Jonathan Adams

The FTSE 100 is expected to open its weekly account in the black with the London market having more or less factored in a US interest rate hike later this week.

According to the spread betting firms, the index of blue-chip shares will advance 20 points to 6,974.21.

In Asia, overnight traders were clearing the decks ahead of Wednesday’s Federal Open Markets Committee meeting with all the major bourses except the Nikkei in negative territory.

The Fed is widely expected to hike the base rate by a quarter of a percentage point.

“There should be no surprises around this meeting, though the press conference will take on an even greater significance in the context of the signalling of Fed intentions in 2017 as regards further rate rises,” said CMC Markets analyst Michael Hewson.

“This time last year expectations were high that last year’s decision to hike rates would be the first one of many.

“This belief proved somewhat optimistic given we haven’t even seen one yet, so not only will Fed chair Janet Yellen’s tone be important, in the context of the Fed’s views about the fiscal stimulus promised by President-elect Trump, but so will the steepness of the dot plots, in terms of members expectations, of the future rate path.”

Expect the oil stocks to be in demand when the Footsie opens after non-OPEC countries agreed to cut production.

Overnight Brent crude homed in on US$59 (£46.88) a barrel as the spot market factored in tighter supply.

Back to the UK and looking ahead, Bellway, Dixons Carphone and Trinity Mirror have scheduled updates this week.

This article is for information purposes only.
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