19th Jan 2015 07:03
LONDON (Alliance News) - London markets are forecast to start higher Monday in quiet trade as investors take stock of a volatile past week and look ahead to an expected announcement from the European Central Bank of stimulus measures and minutes from the Bank of England's latest policy meeting, both later in the week.
The FTSE 100 is forecast to open 18 points higher at 6,568.58, down from Friday's close of 6,550.27, when the index clawed its way back from morning loses to end up 0.8%.
The ECB has its first policy meeting of the new year on Thursday with many in the market expecting President Mario Draghi to announce a broadening of stimulus to include buying sovereign debt to add liquidity to the eurozone economy. An advisor to the European Court of Justice last week cleared the way for Draghi to launch a government bond-buying programme, a prospect which is thought to be behind the Swiss National Bank's surprise decision to drop its currency peg for the franc against the euro.
Brent crude is quoted at around USD50.22 a barrel Monday, back above USD50 for the first time in a week after touching a new six-year low of USD45.16 during Tuesday's session last week. US benchmark West Texas Intermediate was quoted at USD48.50 a barrel, up from a low of USD44.17 last week.
US markets are closed Monday for Martin Luther King Jr Day.
In corporate news, a trading statemen is out from brewer and pub operator Greene King.
Japan's Nikkei closed up 0.8% at 17,014.29, helped by industrial production figures which declined less than initially estimated in November. Industrial production dropped a seasonally adjusted 0.5% month-on-month in November, revised from a 0.6% fall. In October, production grew 0.4%.
The Hang Seng in Hong Kong is down 1.9% at 23.638.09, and the Shanghai Composite is 8.3% lower at 3,097.205, sparked by a Chinese crackdown on margin trading. Margin accounts allow consumers to buy stocks with money borrowed from their brokerage.
By Ian Edmondson; [email protected]
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