US stocks rally should lead to seventh FTSE gain

THE rally in US stocks to close at session highs on Friday should set London’s blue chip share index up for its seventh consecutive session of gains today.

GFT is quoting the FTSE 100 index to open up 16 points from Friday’s close, at a level of 5,444. The German DAX 40 is expected to open up 14 points at 6,148, and the French CAC 40 index is forecast to open up 10 points at 3,682.

Although US stock markets are closed for the Labor Day holiday today, the momentum from Friday – generated by relief that the US jobs data was not as bad as had been feared – should continue to drive Euro equities higher today.

Further direction this week will come from four central banks – Japan, England, Canada and Australia – which hold their policy meetings, although only the Bank of Canada is expected to make any move by raising rates.

Investors will be wary though of the supposed general bias for stock markets to fall during the month of September, and the fact that it’s a shortened week for American markets and the last week of Ramadan may well keep trading volumes light.

Martin Slaney is director of global dealing operations at GFT.