FTSE 100 expected to open higher after Nasdaq and S&P move into record territory

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The FTSE 100 is expected to open in positive territory after a record close for both Nasdaq and S&P 500.

In Asia, opinion was split with Japan and Australia performing well, while China’s main markets were led lower by flattening commodity prices.

The early action in London is likely to be subdued ahead of a two-day meeting of America’s Federal Open Markets Committee (FOMC), which, according to some reports, will assess whether it is time to scale back its US$120bn asset purchase scheme.

Inflation rather than stimulus has become the watchword in recent weeks as the world makes a rapid (possibly too rapid in the eyes of economists) recovery from the global pandemic.

Anticipating possible interest rate rises, the 10-year US Treasury yield nudged higher overnight.

“[There has been] some pre-FOMC position shuffling is occurring across asset classes at the moment,” said Jeffrey Halley, markets analyst at OANDA.

“Equities continue on their merry way higher, with the S&P 500 and Nasdaq tracing new record highs overnight.

“The Dow Jones is lagging, perhaps as its components could be perceived as more vulnerable to the rising inflation data being seen across the world. US yields moved higher across the curve overnight, notably in the 30-year tenor.

“Given the recent gains in bond prices, though, the price action looks more corrective and cautious, with US Retail Sales and PPI to come this evening before the main event tomorrow US time.”

Here at home, updates from Boohoo (LON:BOO), the online fashion giant, and plant hire firm Ashtead (LON:AHT), are top of the list of the companies reporting on Tuesday.

Around the markets

  • Pound: US$1.4113 (flat)
  • Bitcoin: US$40,301.64 (+2.5%)
  • Gold: US$1,866.20 (flat)
  • Brent crude: US$73.09 (+0.3%)

6.50am: Early Markets – Asia / Australia

Stocks in the Asia-Pacific region were mixed on Tuesday after the Nasdaq and S&P 500 both rose to all-time closing highs overnight on Wall Street.

The Shanghai Composite in China fell 0.90% and Hong Kong’s Hang Seng index dipped 0.93%

In Japan, the Nikkei 225 gained 0.95% while South Korea’s Kospi rose 0.14%.

Shares in Australia surged, with the S&P/ASX 200 trading 1.02% higher.

Proactive Australia news:

Buru Energy Limited (ASX:BRU) (OTCMKTS:BRNGF) (FRA:BUD) is advancing preparations for its Currajong 1 exploration well, the first well in its 2021 drilling campaign in the Canning Basin, with the Ensign 963 rig mobilised to site.

Meteoric Resources NL (ASX: MEI) (FRA:RNF) has upgraded the Juruena Project resource in Brazil to 1.9 million tonnes at 6.3 g/t for 387,000 ounces of gold, an increase of 50% over the previous resource.

MGC Pharmaceuticals Ltd’s (ASX:MXC) (LSE:MXC) (OTCMKTS:MGCLF) cannabis-derived epilepsy product CannEpil® has been added to the Primary Care Reimbursement Service (PCRS) in Ireland which makes it free of charge for patients prescribed the treatment.

Latitude Consolidated Ltd‘s (ASX:LCD) (FRA:1KX) first-pass drilling points to previously unidentified and untested northwest-southeast striking mineralisation at Suzie North exploration target within the Murchison Gold Project in WA.

Vango Mining Ltd (AXS:VAN) is well-positioned to further advance its 100%-owned Marymia Gold Project in Western Australia after raising A$6.1 million in an equity raising to sophisticated and professional investors.

TNT Mines Ltd’s (ASX:TIN) latest exploration program has uncovered a large gold anomaly around 1.2 kilometres south of the Eureka Pit in Western Australia.

Emyria Ltd (ASX:EMD) has filed additional patents supporting its EMD-004 cannabinoid-based drug development program targeting irritable bowel syndrome (IBS)

Fe Limited (ASX:FEL) has fired the first blast of ore and waste in the JWD Iron Ore Project pit as part of early development

Archer Materials Ltd (ASX:AXE) (OTCMKTS:ARRXF) (FRA:38A) has signed a non-binding letter of intent (LOI) with Australian Missile Corporation (AMC) to support Australia’s Sovereign Guided Weapons Enterprise.

Kazia Therapeutics Ltd (ASX:KZA) (NASDAQ:KZIA) has teamed up with a medical college from Cornell University to launch a phase two clinical study investigating Kazia’s investigational new drug paxalisib in combination with ketogenesis.

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