FTSE 100 preview: Fed news spurs London shares
The FTSE 100 is seen opening higher on Wednesday as raised US growth forecasts lifted investor sentiment prompting a late recovery on Wall Street and gains in Asia.
Big day: Investors will eye the first revision to UK third-quarter GDP figures
The UK blue-chip index is seen opening up around 0.5% having closed 31.54 points, or 0.6% lower on Tuesday at 5,323.96.
In the minutes of the last FOMC meeting, published on Tuesday, Federal Reserve officials expressed confidence in the sustainability of the US economic recovery, even if they do not see employment picking up soon.
Later in the session, investors will eye the first revision to UK third-quarter GDP figures.
Across the Atlantic, there will be a rash of data released this afternoon ahead of Thursday's Thanksgiving holiday, notably the US PCE deflator, the Fed's preferred measure of inflation, October new home sales and the final reading of the University of Michigan November consumer sentiment numbers.
Commodity stocks, which make up around a third of the index are set to be well-supported as gold struck a record high for a second time this week, and as other metal and crude prices were firmer.
Royal Dutch Shells's chief executive forecast that it would not need to borrow any more money if oil remains at around $70 per barrel, the Financial Times reported.
Seperately, the Guardian reported that Shell's chief executive has called on governments to intervene in the carbon markets.
The Cosmen family increased its stake in National Express for the third time in a week with a purchase of 400,000 shares ahead of Friday's vote on the proposed £360m rights issue, newspapers reported.
Tesco is taking a subsidiary of Sports Direct International to court, the Daily Telegraph reported.
Sales of non-food ranges at British grocers are set to rise 40% over the next five years, a study said on Wednesday, piling pressure on specialist retailers already hit by recession and online competition.
There will be updates today from Compass Group, Johnson Matthey, United Utilities, WS Atkins, Britvic and Qinetiq.
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