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FTSE 100 preview: Yen move to calm shares

By Reuters
Updated: 03:56 EDT, 18 March 2011

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The FTSE 100 should rise today as some sense of calm is brought to markets after Group of Seven finance ministers agreed to intervene to restrain a soaring yen as Japan battled to avert a nuclear crisis.

A foreign exchange worker sit at their desk as the Nikkei stock average is shown below the conversion rate of the U.S. dollar

Support: Shares should rise again.

The UK blue chip index looks set to add 25 to 30 points, or as much as 0.5%, according to financial bookmakers, after it closed 97.88 points, or 1.8%, higher at 5,696.11 on Thursday.

'Whilst Japan's nuclear crisis doesn't appear to be abating any time soon, traders are now fully aware that the full weight of the G7 is ready to do whatever it takes to ensure stable markets,' Jonathan Sudaria, dealer at Capital Spreads, said.

Investors are likely to keep a watchful eye on the Middle East and North Africa, with Brent crude rising $1.35 to $116.25 on Friday on fears of rising geopolitical tensions after the United Nations approved military action to curb Libyan leader Muammar Gaddafi.

Technical analysts were cautious on the FTSE 100 on a short-term view.

'Although the rally (on Thursday) was impressive, it did nothing to change the trend to up and may serve as another opportunity for bearish traders to re-enter their positions at better price levels,' James Hyerczyk, an analyst at Autochartist, said.

No major domestic or US economic data was scheduled for release on Friday.

There will be updates today from T Clarke, Manganese Bronze Holdings and Jupiter Fund Management.

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