GFT is quoting the FTSE 100 index to open up 50 points from Friday’s close, at a level of 5,382, bringing a four day run of declines to an end. A similarly strong start is expected for the German DAX, quoted up 55 points at 6,314, and the French CAC is forecast to open up 41 points at 3,757.
INFLATION IN THE SPOTLIGHT
Traders of equity and index markets will also need to keep an eye on wheat futures this week, as the inflationary implications of Russia’s grain export ban continue to be analysed. With the Bank of England quarterly inflation report out on Wednesday, we could well see its inflation prediction raised accordingly.
Other agricultural commodity markets such as coffee and corn could also see frenetic activity this week in the wake of wheat, as the spectre of rampant food inflation becomes increasingly priced in. Commodity stocks including the miners and oils will also no doubt feature prominently.
Martin Slaney is director of global dealing operations at GFT