Proactive Investors - The FTSE 100 is expected to open higher on Wednesday after US markets reversed early falls to close ahead of today’s interest rate decision by the US Federal Reserve.
Spread betting companies are calling London’s lead index up by around 25 points after closing down 5.67 points at 7,321.72 on Tuesday.
The US Federal Reserve is widely anticipated to leave interest rates unchanged at its November meeting despite strong recent economic data.
According to the CME FedWatch Tool, there is a 98% chance the central bank will leave the federal funds rate range unchanged at 5.25% to 5.50%.
At its September meeting, the Fed left rates unchanged after hiking rates by a quarter percentage point in July.
But Ipek Ozkardeskaya senior analyst at Swissquote Bank thinks “the chances are that we won’t hear anything soothingly dovish.”
“’The higher yields help us do the job’ is the best it will get,” she reckons.
In the US on Tuesday, the Dow Jones Industrial Average rose 0.4%, the S&P 500 rose 0.7% and the Nasdaq Composite rose 0.5%.
In Asia, Chinese manufacturing returned to a mild state of contraction in October, survey data revealed.
The Caixin manufacturing purchasing managers' index fell to 49.5 points in the month from 50.6 in September.
Back in London, and the early focus will updates from GSK (LON:GSK), Next and Asos while the Nationwide House Price Index will also be scrutinised as to the health of the UK property market.
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