FTSE preview: Shares to fall on profit-taking
The FTSE 100 is expected to suffer sharp falls this morning with lower commodity prices and waning risk appetite seen denting demand for equities.
Market watcher: Shares may give up recent gains.
The blue-chip index was seen falling as much as 0.9% by financial bookmakers, following weakness on Wall Street and in Asia and after it rose 0.2% on Tuesday to close at 6,082.88 points.
The index gained 2.7% in April, and was just short of a near-three year high on Tuesday, but investors seem to feel that the rally has run out of steam and that equities are set for a retreat.
'Traders are concerned that the recent multi-year highs made by the major indices were a little ahead of the economic fundamentals and profit taking is expected to add to the declines,' Jonathan Sudaria, night dealer at London Capital Group said.
Energy firms were among the biggest drags on US stocks, weighed by the slipping crude price which was hit by industry data showing US crude oil stocks rose sharply last week.
Miners were also seen under pressure as weaker base metal prices, a 14% plunge in silver prices and a lower-than-forecast manufacturing growth reading in China were set to reduce demand for the sector.
Investors were awaiting British construction PMI data for April due for more clues on the state of the economy ahead of a rate decision from the Bank of England's Monetary Policy Committee on Thursday. The reading was forecast at 55.5, down from 56.4 in March.
Mortgage lending data and money supply figures for March released at the same time will also be watched, as will Nationwide house price data for April.
Antofagasta, Barclays. G4S, GlaxoSmithKline, Kingfisher, and Weir Group are all going ex-dividend, and set to take 5.53 points off the index.
An Australian federal court upheld an earlier ruling barring Fortescue Metals Group from gaining access to a key rail haul line operated by rival Rio Tinto, Fortescue said on Wednesday.
Standard Chartered said it recorded double-digit income growth in the first quarter, helped by strong economic growth in its core Asian markets.
Glencore International AG, set to list later this month, has set the price range for its London and Hong Kong IPO slightly lower than previous guidance, enabling it to raise up to $10bn, three sources told Reuters on Wednesday.
BP has agreed to pay a $25m civil penalty, as well as spend $60m on enhanced safety measures, to settle a federal probe of a pipeline oil spill on Alaska's North Slope in 2006, the US government said on Tuesday.
There will be updates today from Next, Kazakhmys, Antofagasta, Legal & General, BBA Aviation, Blacks Leisure, Henderson, JD Wetherspoon, Logica, Moneysupermarket, Numis, Provident Financial, Rightmove and Sage Group.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Fiat pledges to cease grey car production as they launch new EV
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Blue Whale fund manager on the best of the Magnificent 7
- Mini Cooper SE: The British icon gets an all-electric makeover
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Avon Protection handed £38m gas mask contract by MoD
- MARKET REPORT: North Sea giant Harbour closes in on £9bn...
- Bailey pulls his punches on interest rates yet...
- Watches of Switzerland buys Italy's Roberto Coin Inc for...
- ITV hit by Hollywood strikes as it pins hopes on Euros...
- BBVA goes directly to shareholders as it steps up bid for...
- Bank of England paves way for Britain to cut interest...
- BAE Systems tools-up for growth as Britain plots defence...
- Ford confirms it will cull another of its best-selling...
- Cameron left red-faced as Greensill sues Government over...
- Why we need more than a British Isa to move the dial on...
- Mortgage rates are climbing again - should we be worried?...
- BUSINESS LIVE: BoE base rate decision; ITV eyes ad market...
- Used car sales hit a five-year high as fresh supply of...
- ITV hopes for summer ad boom as it continues to reel from...
- Vodafone told to boost security as £15bn Three merger is...
- Takeover target Wood Group hit by slump in revenues as...
- Snoop Dogg cannabis firm to ditch London after losing 97%...