FTSE 100 preview: Dip ahead of inflation data
The FTSE 100 is expected to edge lower as investors wait for UK inflation data and the latest Federal Reserve Open Market Committee announcement.
Watching brief: Economy news in the UK and US will dictate sentiment today.
Whitbread is likely to come under the spotlight as the hotels operator issues a trading update.
The UK blue chip index looks set to shed 2 to 7 points, or as much as 0.1%, according to financial bookmakers, after it closed up 47.80 points, or 0.8%, at 5,860.75, on Monday, its highest close since Nov. 9, although in extremely light trade.
'The FTSE 100 ran into resistance once again near the 5,875 price level, forming a double top on the intra-day charts and spurring a sell-off into last week's trading range,' Jonah Ford, an analyst at Autochartist, said.
'The current sideways price action hints at near term weakness in share values, given the market's inability to sustain the momentum enjoyed with last week's rally,' he said.
On the domestic economics front, house prices in England and Wales fell for a fifth consecutive month in November, albeit at a slower pace than analysts had expected, the Royal Institution of Chartered Surveyors said.
Investors were waiting for UK November CPI data but the main focus will be on the latest FOMC announcement, due after the London market close.
The Fed is expected to leave rates unchanged, but the statement will be examined for comments on quantitative easing policy.
Other US economic data out on Tuesday includes November retail sales, with November producer prices and October business inventories.
TUI AG, owner of Europe's largest tour operator TUI Travel, said it expected a positive result for the current fiscal year as consumers book more holidays and cost-cuts take effect.
There will be updates today from Whitbread, Drax Group, Carpetright, Domino Printing, Go-Ahead, Imagination Technologies and Travis Perkins.
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