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FTSE 100 Live: Stocks called lower after limp showing in the US

Published 03/10/2023, 06:59
Updated 03/10/2023, 07:10
© Reuters.  FTSE 100 Live: Stocks called lower after limp showing in the US
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Proactive Investors - Good morning and it looks like a weak start in London after a mixed showing in the US following hawkish comments from two leading Fed officials.

Spread betting companies are calling the FTSE 100 down by around 16 points after closing down 97.36 points at 7,510.72 on Monday.

The US Federal Reserve will likely need to keep interest rates higher for longer in order to firmly bring down inflation, a senior Fed official said.

"The most important question at this point is not whether an additional rate increase is needed this year or not, but rather how long we will need to hold rates at a sufficiently restrictive level to achieve our goals," Fed Vice Chair for Supervision Michael Barr told a conference in New York in prepared remarks.

"I expect it will take some time,” he added.

Meanwhile, Federal Reserve Governor Michelle Bowman said she expects it will likely be appropriate to raise rates further and hold them at a restrictive level for some time to return inflation to the 2% goal in a timely way.

In prepared remarks to a banking conference Bowman said she sees "a continued risk that high energy prices could reverse some of the progress we have seen on inflation in recent months."

The comments kept the Dow Jones Industrial Average in the red down 0.2% although the Nasdaq Composite rose 0.7%.

In Asia, Evergrande shares surged as much as 42% on Tuesday after resuming trading in Hong Kong after a suspension.

Back in the UK and there was better news with shop price inflation cooling for the fifth consecutive month in September, according to the latest British Retail Consortium-NielsenIQ tracker.

Aside from that, the early focus in London will be updates from online retailer Boohoo and Greggs, the retailer famous for its sausage rolls.

Read more on Proactive Investors UK

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