The FTSE 100 is expected to open higher today, driven by optimism ahead of today’s meeting of euro zone finance ministers. The UK’s blue chip index is set to open at 5,676, up 14 points (0.25 percent) from Friday’s close.
Earlier today, China’s official inflation data showed that growth in consumer prices slowed to 2.2 percent last month from three percent in May, adding to speculation that the government could soon announce more easing after reducing its deposit rates last week.
On Friday, China will release its GDP estimate for the second quarter, which will be one of the highlights of the week on the macroeconomic front.
“Looking at the recent policy loosening in China and recent comments from officials, who may have already seen the figures, the GDP data may be less than current market expectations, presently around 7.7% for Q2,” said analyst at forex.com Chris Tedder.
“In fact, there are more than few who suggest the number may closer to the wrong side of 7%.
“Either way, the data will likely help pave the way for commodity based risk assets in the days following the announcement (such as commodity indices and currencies).”
Elsewhere, Japan reported that its trade surplus plummeted 62.6 percent to US$2.7 billion in May.
Asian markets were in selling mode today. Japan’s Nikkei 225 index was down 104 points (1.15 percent) at 8,916 at the end of the session and China’s Shanghai Composite Index slumped 29 points (1.3 percent) to 2,194.