The FTSE 100 is expected to begin Wednesday’s session on the front foot as investor optimism began to return despite lingering concerns around the spread of the Wuhan virus.
Spread-better IG expects the FTSE 100 to open around 27 points higher after ending Tuesday’s session 41 points lower at 7,611.
News that the pneumonia-like virus has spread to the US caused some jitters on Wall Street overnight as investors remain concerned that a potential pandemic could drag on economic growth.
The Dow ended Tuesday’s session 0.5% lower at 29,196 while the S&P 500 was down 0.27% at 3,320 and the Nasdaq fell 0.19% to 9,370.
However, these concerns had mostly dissipated in the Asian markets by Wednesday, with the Japanese Nikkei 225 up 0.7% while Hong Kong’s Hang Seng was 1.3% higher.
Michael Hewson, chief market analyst at CMC Markets, said that markets are currently adopting “a safety-first approach” in the face of the disease, particularly with concerns that Chinese New Year celebrations, which begin this weekend, could help the virus spread on a wider scale.
On the currency markets, the pound was 0.1% higher at US$1.3057 against the dollar, with today’s CBI business confidence data possibly providing some catalysts as a barometer for the UK’s economic health in the final weeks before Brexit. There could also be some movement in cable as the Senate impeachment trial against Donald Trump continues to shake US politics.
Significant announcements expected for Wednesday January 22:
Trading announcements: Burberry Group PLC (LON:BRBY), JD Wetherspoon PLC (LON:JDW), Sage Group PLC (LON:SGE), AJ Bell PLC (LON:AJB), Antofagasta PLC (LON:ANTO),Connect Group PLC (LON:CNCT), Close Brothers Group PLC (LON:CBG), Pets at Home Group PLC (LON:PETS), WH Smith PLC (LON:SMWH)
Economic data: US house prices
Around the markets:
Sterling: US$1.3057, up 0.1%
Brent crude: US$64.31 a barrel, down 0.4%
Gold: US$1,552.27 an ounce, down 0.27%
Bitcoin: US$8,712, up 0.7%
Sirius Minerals has launched an internal investigation after a senior worker was allegedly heard discussing the controversial takeover by Anglo American with a hotel barmaid before it was publicly announced – Daily Mail
Washington has threatened retaliatory tariffs if the British government did not back down on plans to impose the levy digital tax from April – Financial Times
Boeing has been forced to halt trading in its shares as the commercial aerospace titan warned of yet another delay to its grounded 737 Max fleet – Telegraph
The probability of the Bank of England cutting interest rates next week is less than 50 per cent, according to financial markets, after the employment rate hit a new record high – Times
Forensic analysis by experts hired by Jeff Bezos to investigate 2018 phone hack has pointed to attack on the Amazon boss from Mohammad bin Salman’s WhatsApp account – FT
Netflix attracted more new subscribers than expected at the end of last year, but still missed its target for the United States and offered a pessimistic forecast for the coming quarter – Times
Published at Wed, 22 Jan 2020 06:45:00 +0000