London pre-open: FTSE to track gains in Asia ahead of BoE minutes
UK stocks are set to continue higher in Wednesday's session following a strong performance in Asia overnight, thanks in part to positive data out from Japan and Australia.
BHP Group Limited NPV (DI)
2,325.00p
16:40 18/04/24
British American Tobacco
2,293.00p
17:05 18/04/24
FTSE 100
7,877.05
17:14 18/04/24
Home Reit
38.05p
17:30 11/04/24
City sources predict the FTSE 100 will open around 22 points higher than Tuesday's close of 6,372.33.
"European markets will look to follow on from yesterday’s gains and take the momentum of this mini recovery into today’s session," said Alpari market analyst James Hughes.
"However, we can’t say that we are totally out of the woods yet as markets face some potentially damaging economic data later today and throughout the rest of this week that could potentially spark more selling if expectations are missed."
Japan's finance ministry revealed that exports rose 6.9% in September compared to a year earlier, while imports climbed 6.2%, although this increased the overall trade deficit by 1.6%.
The Australian consumer price index for the third quarter came in as expected with a rise of 2.3% year-on-year, down from 3.0% in the previous quarter.
Back in the UK, the focus will be on the minutes from the Bank of England's (BoE) latest rate-setting meeting. The voting last month showed a 7-2 split as two members of the Monetary Policy Committee showed their support for rate hikes.
"However, recently market volatility has led to many officials calling for potentially more stimulus and an indefinite hold on interest rates," Hughes pointed out.
"[Wednesday's] result will be interesting to see if the recent equity markets moves have spooked BoE members like they have spooked Fed members in the US."
Later on the US, all eyes will be on September's consumer price figures, with expectations of a decline to 1.6%.
Back on this side of the Pond, the morning's company news revealed that mining giant BHP Billiton's group production growth remained steady in the first quarter, as it maintained guidance to grow output by an average 16% over the two years to June 2015. Group production increased by 9% in the three months to 30 September, in line with the 9% growth seen over the year to June 2014.
Revenue growth at constant currencies slowed in the third quarter at British American Tobacco as depressed consumer income meets large tax-driven price rises. Revenue grew by 2.4% in the nine months to 30 September, down from the 3% growth in the first half of the year, while revenue growth at current forex rates was 9.6%, versus 10.2% in the first half.
Argos and Homebase owner Home Retail reported higher first-half sales and profits, driven by people buying DIY and garden products at Homebase during the summer, but cautioned that the group's full-year results would depend on a good Christmas for Argos. It left its first-half dividend unchanged at 1p.