MARKET PREVIEW: UK's FTSE 100 expected to open higher after holiday weekendAugust 30 2011, 6:59am
The UK's FTSE 100 index is expected to open up 62.9 points higher than Friday's close following the holiday weekend and a week which culminated in a speech by Fed chief Ben Bernanke.
The blue chip index is anticipated to open at 5191 points compared to a level of 5129 last week after Monday's bank holiday.
The boost is thought to be attributable to various factors including the fact that the much feared Hurricane Irene avoided New York and strong US spending figures.
After Bernanke's speech at Jackson Hole, Wyoming on Friday afternoon, UK stocks fell but then rallied to end relatively flat. Those hoping for a definitive decision on quantitative easing (QE) from the Fed chief were left disappointed.
However, there was a signal that the move had not been ruled out entirely for the future.
Research analyst Jana Pristovsek, at IG Markets, said Europe could come under the spotlight again this week.
"With Mr Bernanke’s speech now over, next week markets could likely shift their attention back onto European debt worries. Data from Europe, which will likely affect sentiment, includes European consumer confidence on Tuesday, German GDP data on Thursday, and the PMI manufacturing index from both Germany and the UK on Thursday," she said.
Today's macroeconomic calendar looks relatively busy with trends in lending figures in the UK due at 9.30am and various international economic announcements due.
These include US consumer confidence data out at 3 pm and an EU business climate indicator at 10am.
Strong sentiment was also visible across the Atlantic, and the Dow Jones Industrial Average (DJIA) closed up 254 points to close at 11,539. The S&P index was up 33 points, or 2.83 percent, to stand at 1,210.