Before the open: FTSE expected up but dollar weak following Summers exiting Fed race

The US dollar dropped sharply overnight, following Larry Summers quitting the race to replace Ben Bernanke as Fed chairman.

European markets are expected to open up this morning, with the euro pushed up by a weak dollar.

The German Dax is expected to hit a new record when it opens.

ECB president Mario Draghi will speak later this morning.

In Lisbon, the latest Troika review will see leaders pressurising for a relaxed budget deficit target - 4 per cent to 4.5 per cent.

Key events:

Eurozone August inflation at 10.00. Consumer price index expected up from -0.5 per cent to 0.1 per cent.

US August industrial production at 14.15. Expected up from zero per cent to 0.3 per cent.