Miners Lead FTSE Higher Ahead of FOMC Statement: Spread Bets News
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
At the mid-morning point in London shares have clawed back the vast majority of Monday’s losses.
The FTSE 100 is back through 5600 this morning with a switch in sentiment towards the mining sector leading the index higher.
Corporate news is still thin on the ground and the bulk of today’s bounce back can be put down to a recovery by US stocks on Monday.
The latest interest rate decision is expected from the Federal Reserve this evening, after the UK market has closed.
As a result we could be in for a quiet day as investors wait to hear what the current official view is on the state of the US economy.
Volatility has experienced a marked drop off in the past week which could be seen as a sign of indecision after the FTSE hit fresh 18-month highs.
Shares in London still remain vulnerable to at least a slight slide from here, and maybe today’s Fed statement will provide the catalyst.
Having said that, the medium-term outlook is still positive and weakness is still expected to be short-lived.
Looking ahead to the US open, at the moment we are expecting the Dow Jones index to start off around 15 points higher.
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Good Luck!
DB
The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.
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