Proactive Investors - 7.00am: FTSE 100 to edge higher ahead of GDP reading
Good morning. The FTSE 100 is expected to edge higher at the open ahead of the latest estimate for economic growth in the UK.
Spread betting companies are calling London’s blue-chip index up by around 4 points after motoring 133.59 points higher to 7,416.11 on Wednesday.
The pound jumped above US$1.30 after weaker-than-expected US inflation figures which saw equity markets on Wall Street rise.
While the ebbing inflation data is not expected to sway the Federal Reserve from raising interest rates at its next meeting investors are beginning to think that may be the last increase for now.
A rate hike on July 26 remains the most likely outcome but the end of its hiking cycle is "in sight", Ebury analyst Matthew Ryan believes.
Ryan Sweet at Oxford Economics agreed. "The weakness in core inflation and moderation in core services inflation excluding housing has reduced our subjective odds of an additional rate hike after July."
"Therefore, this tightening cycle by the Fed is likely coming to an end," he added.
Back in London, and alongside the economic data, the early focus will be updates from Barratt Developments (LON:BDEV), Experian (LSE:EXPN), Hays (LON:HAYS), John Wood.