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Summary
- FTSE 100 set to open on a flat-to-soft note on Tuesday, 16 March despite Asian markets being mostly up
- Investors are awaiting policy outlook from the US Federal Reserve’s two-day meeting set to start later today
- The ongoing earnings results and an upcoming interest rate decision by the BoE are expected to impact London markets
London’s key index FTSE 100 is expected to open on a flat-to-soft note on Tuesday, 16 March, tracking lower FTSE 100 March futures even as Asian equities were up boosted by positive US market sentiment ahead of the Fed meeting.
The index last closed at 6,749.70, down by 0.17 per cent after France, Germany, and Italy added to the list of countries pausing the rollout of Astrazeneca shots due to blood clotting fears on Monday. However, the pharmaceutical company’s shares were not impacted by the move and ended higher by 0.39 per cent.
Asian markets in the green
Asian equities were mostly up on Tuesday, boosted by US markets closing at record highs on Monday due to optimism surrounding US economic recovery ahead of the Federal Reserve meeting.
Japan’s key index Nikkei 225 was up by 0.47 per cent, China’s Shanghai Composite Index was up by 0.58 per cent. Hong Kong’s key index Hang Seng was trading in the green, up by 0.55 per cent, while South Korea’s Kospi Composite index jumped 0.59 per cent.
India’s Nifty 50 rose by 0.59 per cent, and Australia’s ASX 200 ended higher by 0.80 per cent earlier today.
The March futures linked to the FTSE 100 were down by 0.17 per cent as of 16 March at 0454 AM GMT, indicating a flat-to-soft start to the London markets.
Two of the major indices of the US, Dow Jones and the S&P 500 index ended at record highs on Monday due to investors shaking off economic recovery concerns. The 10-year treasury yield also declined ahead of the Fed’s meeting, awaiting policy cues.
It was Dow’s sixth straight record high close due to the passing of the US $1.9 trillion covid relief bill and mass vaccinations. The Dow Jones Industrial Average last closed up by 0.53 per cent, while the S&P 500 index ended 0.65 per cent higher on Monday. Meanwhile, the Nasdaq Composite closed up by 1.05 per cent.
GBP weakened against USD
The Great Britain pound (GBP) was trading lower against the United States dollar (USD) on Tuesday. At around 0515 AM GMT, the GBP/USD currency pair was down by 0.2468 per cent, trading at 1.3866.
The GBP/USD pair traded between a low of 1.3864 and a high of 1.3903, respectively, at the interbank foreign exchange market, during the session so far. The Bank of England had fixed a reference spot exchange rate of 1.3893 USD and 1.1638 EUR against a unit of pound sterling on 12 March.
Upcoming cues
On the international front, Germany is expected to announce its wholesale price index data today, while the US Federal Reserve’s key two-day monetary policy meeting is set to start later today.
Domestically, the London market is expecting final results from several companies such as 4imprint Group plc, Antofagasta plc, Bakkavor Group Plc and others to be announced today. The markets are also awaiting cues from the upcoming Bank of England’s interest rate data set to be unveiled later this week.
