The FTSE 100 is expected to open higher on Wednesday morning following a record session for US markets on Tuesday.
Spread-better IG expects the FTSE 100 to start around 25 points higher after ending Tuesday’s session up 98 points at 6,432.
Expectations of a positive start followed a record-breaking session for Wall Street overnight, with the Dow Jones Industrial Average rising 1.54% to close at a record high of 30,046. The S&P 500 also set a new record, closing 1.62% higher at 3,635, while the Nasdaq climbed 1.31% to 12,036.
The optimism was bolstered by the official start of the presidential transition despite Donald Trump still refusing to officially concede. Meanwhile, traders will be eyeing US GDP and durable goods orders later today for more positive news.
Things were also looking upbeat in Asia this morning, with Japan’s Nikkei 225 up 0.54% while Hong Kong’s Hang Seng rose 0.4%.
On currency markets, the pound was slightly off against the dollar, down 0.11% at US$1.334, although sterling could see some movement catalysts as Chancellor of the Exchequer Rishi Sunak delivers his spending review to the House of Commons later today.
The review will outline the government’s spending plans for the year ahead of the UK looks to recover from the effects of the pandemic, while the Chancellor is also expected to reveal the latest public finance and economic forecasts from the Office for Budget Responsibility (OBR).
Early Markets: Asia / Australia
Asia-Pacific markets were mixed today following a record session on Wall Street as COVID-19 vaccine hopes and reduced uncertainty in US politics boosted investor sentiment.
In Japan, the Nikkei 225 gained 0.50% while the Hang Seng index in Hong Kong advanced 0.16%.
However, South Korea’s Kospi dipped 0.62% and China’s Shanghai composite was down 1.02%.
Over in Australia, the S&P/ASX 200 lifted for a third day, with the index up more than 12% this month.