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FTSE 100 Live: Stocks expected to start week on the back foot

Published 08/01/2024, 06:59
Updated 08/01/2024, 07:10
© Reuters.  FTSE 100 Live: Stocks expected to start week on the back foot
UK100
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Proactive Investors - FTSE 100 expected to open lower.

The FTSE 100 is expected to start the week on the back foot with investors hoping this week’s US inflation print will prompt a change in fortunes for equities after the weak start to the year.

Spread betting companies are calling London’s blue-chip index down by around 23 points after closing down 33.46 points at 7,689.61 on Friday.

"After several weeks of gains and having finished 2023 on a high note it was inevitable that at some point markets would probably take a step back, having been given a lift into year-end by a belief that rate cuts were coming in early 2024,” said Michael Hewson, UK chief market analyst at CMC Markets.

On Thursday, US inflation figures are due.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank said: “The headline inflation in the US is expected to have slowly accelerated to 3.2% from 3.1% printed a month earlier, while core inflation is expected to have further eased to 3.8% from 4% printed a month earlier.”

“Soft inflation numbers, ideally softer-than-expected, could slow the corrective selloff in both stock and bond markets, yet the inflation risks are now tilted to the upside,” she added.

Read more on Proactive Investors UK

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