FTSE 100 Set to Open in the Red Tracking Asian Peers and Eyeing US Fed Decision 

Summary

  • The FTSE 100 set to open lower on Thursday tracking Asian equities after the US Fed sped up its interest rate hike timeline.
  • FTSE futures were trading down by 1.50 per cent on Thursday early morning.
  • The market is awaiting cues from May retail sales data to be announced on Friday.

The UK’s key index FTSE 100 is set to open in the red on Thursday, tracking cues from its Asian counterparts and FTSE futures. The FTSE 100 futures were trading down by 1.50 per cent at 07:01 HRS GMT+1 this morning.

The index last closed at 7,184.95, up by 12.47 points or 0.17 per cent on 16 June, buoyed by gains in industrial and defence stocks. However, the rise in inflation in the UK pared some of the gains.

(Image Source: Refinitv)

Asian stocks mostly in red

Asian stocks dipped on Thursday, following cues from their US counterparts. The US central bank, the Federal Reserve, signalled interest rate hike plans by accelerating its timelines to 2023 to tackle rising inflationary pressures in the US.

Japan’s key index Nikkei 225 was trading lower by 0.94 per cent. Meanwhile, China’s SSE Composite Index was up by 0.13 per cent.

Hong Kong’s key index Hang Seng was down by 0.16 per cent, while South Korea’s Kospi composite index was trading down by 0.45 per cent.

India’s Nifty 50 shares were down by 0.31 per cent, while Australia’s ASX 200 ended lower by 0.32 per cent.

Also Read: FTSE 100 Traded Above 7,100 Level; Bitcoin Price Breached $40,000

US Markets

The Dow Jones US 30 futures contract was trading down by 0.44 per cent, while the S&P US 500 futures contract was lower by 0.45 per cent on 17 June at 07:13 HRS GMT+1. Also, the Nasdaq US Tech 100 futures Contract was down by 0.60 per cent.

The US markets closed down on Wednesday due to Fed’s change of its monetary policy stance from tackling the slowdown caused by the pandemic to an accelerated interest rate policy decision. It talked on ways to end its bond buying program and stated the pandemic related health emergency was no longer a core constraint on the US economy.

The Dow Jones Industrial Average index last closed down by 0.77 per cent on 16 June, while the S&P 500 index ended lower by 0.54 per cent. Meanwhile, the Nasdaq Composite index closed down by 0.24 per cent.

Sterling weakens against the USD

The Great Britain pound (GBP) was trading lower against the United States dollar (USD) on Thursday. At around 07:24 HRS GMT+1, the GBP/USD currency pair was down by 0.0036 per cent, trading at 1.3986. The pair’s last close stood at 1.3987.

Meanwhile, the GBP/EUR currency pair was trading up by 0.0463 per cent at 1.1665 at around 07:25 HRS GMT+1.

The Bank of England’s daily spot exchange rates as of 15 June for GBP/USD currency pair was at 1.4083, and for the GBP/EUR currency pair was at 1.1616.          

Also Read: FTSE 100 to open a bit higher as Asian equities remain mixed

Upcoming cues

On the domestic front, the London market is awaiting final earnings from Halfords, NextEnergy Solar Fund Ltd, Open Orphan plc and more today.

The market is also awaiting cues from the UK’s May retail sales data slated to be announced on Friday.

On the international front, the US is set to announce a few macroeconomic data later today, including continuing claims, initial jobless claims and the Philadelphia Fed Index.

The EU is also slated to report its consumer price index data at 10 AM GMT+1 today.

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