21st Jan 2015 07:04
LONDON (Alliance News) - London markets are forecast to start higher Wednesday, as investors look ahead to expected stimulus measures from the European Central Bank on Thursday and focus on minutes from the Bank of England's latest policy meeting at 0930 GMT Wednesday.
The FTSE 100 is forecast to open 22 points higher at 6,6642, up from Tuesday's close of 6,620.1.
"European equities are in a good space at the moment and we are calling them higher yet again with optimism continuing to ride high," said Stan Shamu at IG.
The Bank of Japan kept its monetary policy unchanged and lowered its near-term inflation forecast as falling oil prices hamper efforts to lift inflation. At the monetary policy meeting on Wednesday, the policy board of the central bank decided by an 8-1 vote to maintain its target of raising the monetary base at an annual pace of about JPY80 trillion.
Citing lower crude oil prices, the BoJ downgraded its core inflation estimate for fiscal 2015 to 1% from 1.7%. But the central bank lifted the forecast for fiscal 2016 to 2.2% from 2.1%.
Japan's Nikkei closed down 0.5% at 17,515.23. The Hang Seng in Hong Kong is up 1.7% at 234,344.02, and the Shanghai Composite is 4.6% higher at 3,318.991.
In economic news, the latest UK wages and unemployment data for the three months to November are due at 0930 GMT, as are the Bank of England's minutes from its latest policy meeting. US mortgage applications to January 16 and housing starts in December are due in the afternoon session.
Brent crude is quoted at around USD48.28 a barrel Tuesday, up from last week's low of USD45.16. US benchmark West Texas Intermediate is quoted at USD46.81 a barrel.
In UK corporate news, trading updates being issued by SABMiller, Dixons Carphone, Halfords and FirstGroup.
American Express, eBay, and United Rentals report earnings after the close of US markets.
By Ian Edmondson; [email protected]
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