The FTSE 100 is expected to open higher on Wednesday as markets look set to rebound from yesterday’s slump.
Spread-better IG expects the FTSE 100 to start around 41 points higher following Tuesday’s 101 point fall to 5,862.
The FTSE 100 looks set to take its lead from the strong performance from Wall Street overnight, which saw the Dow Jones Industrial Average close 0.76% higher at 28,645 while the S&P 500 climbed 0.75% to 3,526 and the Nasdaq rose 1.39% to 11,939.
Markets in Asia were more mixed on Wednesday, with Japan’s Nikkei 225 up 0.22% while Hong Kong’s Hang Seng fell 0.51% following news that Australia has entered its first recession in just under 30 years.
The US ADP job figures, which are due at 1.15pm UK time and expected to show 950,000 jobs were added last month, up from 167,000 in July, may serve as a signal for some investors to push higher in the afternoon. Traders may also keep an eye on Bank of England governor Andrew Bailey’s testimony before the UK Treasury Select Committee at 2.30pm.
On currency markets, the pound was trading relatively flat against the dollar at US$1.338, with the ADP jobs report potentially providing a movement catalyst ahead of the critical US non-farm payroll report on Friday.
Significant announcements expected on Wednesday:
Economic data: UK house prices, US ADP unemployment
Around the markets:
Sterling: US$1.338, down 0.03%
Brent crude: US$45.99 a barrel, up 0.88%
Gold: US$1,963 an ounce, down 0.4%
Bitcoin: US$11,897, up 1.58%
6.45 am: Early Markets: Asia / Australia
Mainland Chinese stocks were mixed by the afternoon, with the Shanghai composite down 0.11% while Japan’s Nikkei 225 gained 0.47%.
South Korea’s Kospi added 0.3% but Hong Kong’s Hang Seng index slipped 0.05%.
Australia’s S&P/ASX 200 led gains among the region’s major markets as it surged 1.74%.
However, the country’s GDP fell 7% in the June quarter, its largest quarterly fall on record according to the Australian Bureau of Statistics.
Proactive Australia news:
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