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FTSE 100 Live: Stocks to make bright start after US gains

Published 10/10/2023, 07:06
Updated 10/10/2023, 07:10
© Reuters.  FTSE 100 Live: Stocks to make bright start after US gains
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Proactive Investors - Good morning and blue chips in London are to make a positive start to the day following gains in the US after two Federal Reserve officials hinted interest rates may have risen far enough.

Spread betting companies are calling the FTSE 100 up by around 58 points after closing down 2.37 points at 7,492.21 on Monday.

US markets reversed early falls to close higher. The Dow Jones Industrial Average rose 0.6%, the S&P 500 climbed 0.6% and the Nasdaq Composite advanced 0.4%.

The vice-chair of the Federal Reserve said the US central bank needed to "proceed carefully" with forthcoming interest rate decisions.

Officials "are in a sensitive period of risk management", Philip Jefferson said in prepared remarks, needing to balance the respective risks of not tightening enough and being too restrictive.

His comments were similar to those from Dallas Fed President Lorie Logan, who noted that tighter financial conditions could mean the bank does less in terms of raising its policy rate.

Referring to the rise in bond yields, Logan said: "If term premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening to achieve the FOMC’s objectives."

In Asia, Country Garden fell 8.3% after it said that it did not expect to meet all of its offshore payment obligations in time as it edges towards a potential default.

Back in London, and the early focus will be updates from Reach, Robert Walters and YouGov (LON:YOU) while the BRC’s retail sales report will also be scrutinised after it showed a slowdown in retail sales growth in September.

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