10th Oct 2013 06:53
LONDON (Alliance News) - UK stocks are expected to open higher Monday after US House Republicans indicated they are considering signing up to a short-term increase in the debt ceiling, due to be reached in just seven days. Negotiations are in early stages but following three consecutive days of decline, the markets are taking the news positively.
The FTSE 100 is indicated 0.53% higher by IG, expected to open about 6,362.00
Consumer confidence in Japan has improved more than expected in September, data from a survey showed overnight. The seasonally adjusted consumer confidence index, excluding one-person households, advanced to 45.4 in September from 43 in August, figures released by the Cabinet Office revealed. Economists expected the index to rise to 43.8. In July, the score was 43.6.
The strong confidence reading has lifted the Nikkei index, which currently trades up more than 1%. Stocks are mixed elsewhere in Asia, with the Hang Seng currently down about 0.9%. US stocks closed mixed Wednesday, the DJIA and the S&P 500 marginally higher while the Nasdaq closed down about 0.5%.
Janet Yellen was officially nominated as chairwoman of the Federal Reserve by US President Barack Obama in a ceremony at the White House Wednesday. "She doesn't have a crystal ball, but what she does have is a keen understanding of how the markets and the economy work", Obama said.
At the same time, minutes from the September Fed meeting were released which showed there was a split on whether to continue with the USD85 billion per month bond buying program. The minutes record those against tapering "viewed incoming data as having been on the disappointing side".
The minutes highlight both the increased likelihood of the taper time-line being pushed out further in light of the lack of official data due to the government shut-down and the problems Yellen is likely to face in her new role in creating consensus at the Fed.
In the UK, the Bank of England will be in focus Thursday as the MPC announces its latest policy decisions. The expectation is for the UK base rate to remain unchanged at 0.5% and for there to be no change in the GBP375 billion asset purchase program. Central bank governor Mark Carney will be watched closely as always for further thoughts on forward guidance, Help-to-Buy and the economic cost of the ongoing political stand-off in the US.
Movers to watch out for today include retailer WH Smith which released preliminary results, recruitment company Hays after putting out a management statement, and emerging markets investment mangers Ashmore Group which also released a management statement.
The afternoon will bring US initial weekly jobless claims. Given the postponement of last week's non-farm payroll unemployment numbers due to the government shutdown, the weekly numbers have taken on extra importance and will be in focus at 1330BST.
At the same time US import export prices are released, while later in the afternoon a speach from the Fed's James Bullard may provide some interest.
By Jon Darby; [email protected]; @jondarby100
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Wh SmithHaysAshmore