9th Apr 2015 06:36
LONDON (Alliance News) - UK stocks are set to open higher Thursday after minutes from the most recent Federal Open Market Committee meeting showed members split on whether the US central bank should raise rates in June.
The minutes of the two-day FOMC meeting, held in March, showed that several participants determined that the economic data and outlook were likely to warrant the beginning of the process of raising rates in June.
Others said conditions would not be appropriate to begin raising rates until later in the year due to the effects lower energy prices and the dollar's appreciation have on inflation.
However, the meeting was held before the release of the latest jobs data last Friday, which showed employment in the US rose by much less than expected in March.
"Given that these minutes pre-dated the most recent economic data, we can probably presume given recent comments that those who favoured a June move could well be revising that assessment, indeed Atlanta Fed President Dennis Lockhart stated as much in comments earlier this week, when he talked about a possible July or September window," says CMC Markets chief market analyst Michael Hewson.
"US investors appear to be drawing that conclusion already, given the rebound in stock markets in the wake of last night's minutes," Hewson adds.
Wall Street closed higher on Wednesday. The DJIA ended up 0.2%, the S&P 500 closed up 0.3%, and the Nasdaq Composite was up 0.8%.
IG futures indicate the FTSE 100 to open 22.2 points higher at 6,959.6. The index closed down 0.4% at 6,937.41 on Wednesday with most of the focus on Royal Dutch Shell's takeover of fellow oil and gas company BG Group.
In Asia, the Japanese Nikkei closed up 0.8% at 19,937.72 still at 15 year highs. The Hang Seng is up 3.0% having hit a new seven-year high at 27,922.67 earlier in the session. The Shanghai Composite trades down 1.4%.
Shire said the phase two trial of its SHP625 investigational compound failed to meet primary or secondary endpoint goals in its study of pediatric patients with Alagille syndrome. The FTSE 100 drugmaker said mean serum bile acid levels and pruritus at the end of the study were lower in both SHP625 and placebo treated groups as compared to baseline. serum bile acid levels and pruritus at the end of the study were lower in both SHP625 and placebo treated groups as compared to baseline.
PZ Cussons said its performance for the period from January 28 to April 8 has been in line with expectations and its country performance has been line with "the comments made in the interim results announcement".
The maker of bath products Imperial Leather and Original Source said that trading in Nigeria, the group's largest market, has resumed as normal following a "short period of lost trading days during the presidential election process", and that the naira exchange rate is currently stable after further devaluation in the period.
Victrex said it delivered a good performance in the first half of its financial year, with revenue rising on the back of an improved sales volume boosted by the strong performance of its consumer electronics division.
The FTSE 250-listed polymer products company said group revenue in the first half of its financial year to the end of March is expected to be GBP130.3 million, up 8.7% from GBP119.9 million a year earlier. Its sales volume in the first half was 2,028 tonnes, 28% higher year-on-year.
There also has been a fourth quarter trading statement from food producer Cranswick, trading statements from bonding materials supplier Scapa Group and UK Mail Group and full-year results from Interactive gaming company NetPlay TV.
In the economic calendar, there are UK trade data at 0930 BST, before the Bank of England's interest rate decision at 1200 BST. US weekly initial and continuing jobless claims are at 1330 BST.
By Neil Thakrar; [email protected]; @NeilThakrar1
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