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UK 100 Rises Ahead of FOMC and US Q4 GDP Reading

In mid-morning trading, the UK 100 spread betting market has pushed higher once again, although the Fed meeting later today will likely hold markets in check.

Embattled bears looking for a way of stopping this seemingly-interminable run higher at least have good reason to hope today.

With the latest Fed decision announced this evening, and US GDP also up today, there is the possibility that positive sentiment could take a hit.

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Then again there has been little to hold back markets of late, and with earnings season progressing so well, the equity markets may press on regardless.

The biggest fallers in the UK’s premier index today are Imperial Tobacco and Petrofac.

The former has been hit by a burgeoning black market in Europe, which has hurt profits, while the latter is down in sympathy with Italian oilfield services firm Saipem, which has slumped by 35% after a profit warning.

Back to the US, and it’s hard to muster too much excitement about the Fed meeting since no major change in policy is forecast.

Changes in the membership might provide speculation about the likely direction in policy, but we are still talking about different degrees of dovishness rather than any substantial shift towards tighter monetary policy.

Ahead of the open, we expect the Dow to open up 15 points at 13,969, with the key 14,000 level just a short hop away.

 

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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

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