7.00am: FTSE seen lower
FTSE 100 set to open lower this morning after US markets closed higher but well off best levels for the day ahead of key inflation data tomorrow and as results from the US midterm elections started to come in .
Spread betting companies are calling the lead index down by around 25 points.
Michael Hewson (Chief Market Analyst at CMC Markets UK) said: “US markets also had another good day, finishing higher for the 3rd day in a row, although well off the highs of the day with the gains being relatively modest, despite a fall in treasury yields with the markets trading relatively cautiously ahead of tomorrow’s CPI report.”
“This pullback suggests we will see a lower European open this morning.”
Initial polls were suggesting the Republicans would take control of the House of Congress while the race for the Senate was said to be too close to call.
Ipek Ozkardeskaya senior analyst at Swissquote Bank said: “The results are still coming in. At the time of writing, there is a 50/50 shot at the Senate, and the Republicans have more seats in the House. No surprise.”
“From an investor point of view, a Republican win in both chambers is a good outcome for the stocks. And even a divided government, which we will sure get, is better for the stocks than a Democratic win.“
In London, M&S, Taylor Wimpey (LON:TW), Biffa, and Smith News are among the notable names in the diary for Wednesday.