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FTSE 100 Live: Stocks expected to stabilise after heavy falls

Published 18/01/2024, 07:00
© Reuters.  FTSE 100 Live: Stocks expected to stabilise after heavy falls
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Proactive Investors - London expected to stabilise after heavy falls.

The FTSE 100 is expected open little changed, after a gllomy session for global equities on Wednesday.

Spread betting companies are calling London's blue-chip index unchanged after closing down 112.05 points, 1.5%, at 7,446.29 on Wednesday.

Wednesday's falls followed weak economic data from China plus the prospect of interest rate cuts being pushed back later into 2024 after strong inflation figures in the UK, robust retail sales data in the US and comments from ECB President Christine Lagarde who hinted at summer rate reductions.

In the US on Wednesday, markets closed lower as hopes for a rate cut in March fell closer to a 50/50 bet.

James Knightley at ING said: "The jobs market is tight, inflation is above target, consumer spending is holding up and recent Fed commentary suggests they are in no hurry to loosen policy. As such we continue to favour May as the start point for interest rate cuts rather than March as the market currently favours."

Back in London, and the early focus will be updates from betting firm Flutter, fast fashion outfit boohoo, electricals retailer Currys (LON:CURY) and iconic boot maker Dr Martens (LON:DOCS).

In the UK, investors will be keeping an eye out for comments from Chancellor Jeremy Hunt, as he visits Davos in Switzerland.

Read more on Proactive Investors UK

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