UK’s blue-chip stocks are expected to begin Thursday’s session on the back foot.
Equity markets are being weighed down somewhat due in part to pain felt by investors in the bond market, which continues to slump.
It comes after European Central Bank president Mario Draghi forecast faster euro-area inflation and said market volatility will continue.
The markets are also watching closely for any news of a Greek debt deal, and are waiting for tomorrow’s influential monthly US employment stats. Some are hopefull ahead of Friday’s non-farm payroll report as separate figures showed private sector hiring had improved.
Wall Street’s key benchmarks ended Wednesday higher; the Dow Jones gained 0.35% to 18,076 while the S&P 500 added 0.2% and the Nasdaq performed best rising 0.45%.
Asian stock markets began in similar vein, before turning negative.
Japan’s Nikkei dipped slightly, down 0.09% to 20,454 while Hong Kong’s Hang Seng lost over 1% and the Shanghai Composite fell more than 3%. Australia’s ASX 200 was down 1.3% while India’s Sensex was basically flat, and Korea’s Kospi was among very few benchmarks in positive territory.
In London, CFD and spreadbetting group IG Markets is calling the FTSE 100 to open around 30 points lower, at 6,926 to 6,932.
Significant announcements expected today
Final: John Laing Environmental Asset Group (LON:JLEN), Johnson Matthey (LON:JMAT), VP (LON:VP.), Wincanton (LON:WIN)
Passenger statistics: easyJet (LON:EZJ)
The following widely held stocks are trading ex-dividend: Alliance Trust, Associated British Foods, Debenhams, WPP group.
Economic: Bank of England interest rate announcement