17th Feb 2014 07:35
LONDON (Alliance News) - UK stocks are called to open about flat Monday, shrugging off significant gains made by Asian equities overnight, with a lack of economic data and a US holiday keeping markets subdued.
"With no major releases of note, Monday will provide an opportunity for market positioning ahead of some major economic prints as the week progresses," says Jonathan Thomas, senior economist at Lloyds bank.
In Asia, however, equities are significantly higher despite Japanese gross domestic product falling well short economists' expectations.
Japan's GDP grew 0.3% quarter-on-quarter in the fourth quarter, data from the country's Cabinet Office revealed. Although the preliminary estimate showed that the economy had expanded for the fourth consecutive quarter, the headline figure significantly missed forecasts for an increase of 0.7%, following the 0.3% gain in the third quarter.
"The miss will probably mean that more stimulus will be on the way in the coming months," says Michael Hewson, chief market analyst at CMC Markets.
Subsequently, ahead of the London stock market open, the Nikkei is up 0.6%, the Hang Seng is up 1.1%, and the Shanghai Composite index is up 0.8%.
This positive sentiment, however, is not expected to lift UK stocks Monday. Both IG and CMC Markets indicate that the FTSE 100 will open about flat at around 6,663 points.
Important data including UK CPI, monetary policy committee minutes, and retail sales information, Germany's ZEW survey and preliminary PMIs, and US CPI figures for January, among others, are due to be released later in the week.
In the only UK economic release of the day, property tracking website Righmove revealed that the average asking price for a house in the UK was up 3.3% on month in February, following a 1% increase in January. On a yearly basis, house prices surged 6.9%, accelerating from the 6.3% jump in the previous month.
In the US, equity markets are closed for President's Day Monday.
In the corporate calendar, FTSE 100-constituent Hammerson has been joined by FTSE 250-listed Fidessa Group in releasing full-year results. Also in the FTSE 250, Telecom Plus has released interim management statements.
By James Kemp; [email protected]; @jamespkemp
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