UK equities are poised for a lower open today after US stocks pared gains late in Wednesday’s session following an early rally on better than expected earnings report from several majors, including retailers Target Corp (NYSE:TGT) and Staples (NYSE:SPLS).
Financial bookmakers are expecting the UK’s blue chip FTSE 100 index to open at 5,278 points, or 53 points (1 percent) below yesterday’s close.
All eyes will be on today's US data, which will be released this afternoon UK time.
Today’s macroeconomic calendar includes closely followed weekly jobless claims data from the US Labor Department. Analysts polled by Bloomberg expect to see a 5,000 increase to 400,000.
Other data includes the Philly Fed business confidence index, the Labor Department’s consumer price index for July and an update on existing home sales for July from the National Association of Realtors.
A Reuters poll projected an increase in home sales from 4.77 million in June to 4.9 million, while the Philly Fed index is expected to climb to 3.7 from 3.2 in June.
“Looking ahead, there is a raft of economic data due out of the US...any weakness amongst this data could reignite fears over the state of US economic growth,” said research analyst at IG Markets Ben Potter.
Across the Atlantic, the Dow Jones Industrial Average (DJIA) climbed 4.5 points to close at 11,410 yesterday, while the broader S&P 500 index added 1 point to end Wednesday’s session at 1,193.
Asian markets switched to selling mode today.
Japan’s benchmark Nikkei 225 index shed 81 points (0.9 percent), falling to 8,976 by the end of the session, while China’s Shanghai Composite Index stood 21 points (0.8 percent) lower at 2,580 just before close of play.