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Source: HNK, Shutterstock
Summary
- FTSE 100 to likely open on a flat to- soft note on Friday, 12 March, Asian equities were mostly up but pared their early gains.
- US markets soared on Thursday following the passage of US $1.9 trillion covid relief and eased inflation concerns.
- The FTSE 100 March futures were trading lower by 0.22 per cent.
- The market is awaiting cues from domestic macro data and corporate dividend payment dates
London’s key index FTSE 100 is expected to make a flat to subdued start on Friday, 12 March, following lower FTSE 100 March futures and as Asian equities pared gains, though they mostly remained in the green. The index last closed at 6,736.96, up by 0.17 per cent due to rebound in the mining stocks such as Rio Tinto, Anglo American and Antofagasta as copper prices rose. The markets are speculated to be in a commodity super cycle.
Asian markets mostly up
Asian equities were trading cautiously but mostly in the green on Friday as the US markets soared after investor concerns about rising inflation subsided and the passage of a US $1.9 trillion stimulus package.
Japan’s key index Nikkei 225 was trading up by 1.49 per cent, while China’s Shanghai Composite was up by 0.19 per cent, whereas South Korea’s Kospi Composite index jumped by 1.40 per cent. India’s Nifty 50 gained 0.71 per cent, and earlier today, Australia’s ASX 200 ended higher by 0.79 per cent. Meanwhile, Hong Kong’s key index Hang Seng fell by 0.25 per cent.
The March futures linked to the FTSE 100 were trading 0.22 per cent lower, indicating a subdued start to the London markets.
The Dow Jones Industrial Average and S&P 500 index hit all-time intraday and closing highs on Thursday following better than expected jobless claims data easing inflation worries and covid relief bill passage.
Dow Jones Industrial Average closed up by 0.58 per cent, while the S&P 500 index ended 1.04 per cent higher. Meanwhile, the Nasdaq Composite closed up by 2.52 per cent.
GBP falls against USD
The Great Britain pound (GBP) weakened against the United States dollar (USD) on Friday. At around 0530 AM GMT, the GBP/USD currency pair was trading at 1.397, down by 0.0872 per cent from the previous close of 1.3931.
The GBP/USD pair was traded between a low of 1.3970 and a high of 1.4003, respectively, at the interbank foreign exchange market, during the session so far. The Bank of England had fixed a reference spot exchange rate of 1.3904 USD and 1.1688 EUR against a unit of pound sterling on 10 March.
Upcoming cues
On the domestic front, the London market is awaiting several macro data announcements, including the January balance of trade, industrial production, manufacturing production and construction output set to be announced by the Office for National Statistics later today. The market is also anticipating several dividend payments from companies like Avon Rubber, JPMorgan Russian Securities plc Sigma Capital Group plc and others.
Internationally, several economic announcements are also slated for later today, including Germany’s consumer price, the EU’s industrial confidence and the US’ producer price index data which could impact investor sentiment.
