Shares are likely to open higher this morning, with investors remaining in buoyant spirits following on from Friday’s stronger than expected non-farm payrolls data from the US economy.
GFT is quoting the FTSE 100 index to open up 14 points from Friday’s close, at a level of 5,889. The German DAX 40 is expected to open up 7 points at 6,761, and the French CAC 40 index is forecast to open up 5 at 3,919.
After a week of big news and watershed moments from the States, which in particular saw the Federal Reserve announce a $600bn bond purchase as part of the second phase of its quantitative easing programme, and during which share prices returned to the pre-financial crisis levels of June 2008, this week is likely to be rather less symbolic.
On the earnings front we have General Motors and Cisco as well as Sainsbury, Marks and Spencer and Vodafone in the UK. The Bank of England’s quarterly inflation report due out on Wednesday includes the Bank’s projection for inflation and economic growth for the next two years.
Governor Mervyn King’s press conference after the release of the report will be closely analysed for clues as to future monetary policy, including any potential for additional quantitative easing.
Martin Slaney is director of global dealing operations for GFT.