What you need to know before the open – 10/10
US markets closed slightly higher yesterday, following Janet Yellen's nomination as Fed chairman and acceptance speech in which she pointed to a more relaxed monetary policy – diminishing the chance of a taper being imminent. In addition, the minutes from last month's FOMC showed that opinions were divided on a taper, and there was plenty of discussion on the risk of a debt ceiling stalemate. Asian markets remained mixed on the shutdown.
Positive start in Europe expected this morning #FTSE being called 6363 + 34 & #DAX 8558 +55. BOE rate decision at 12pm
— Mark Murnane (@markhmurnane) October 10, 2013
Stronger open forecast for the FTSE this morning, currently expected to start +25 at 6363.
— David Jones (@DavidJones_IG) October 10, 2013
Today we have the Bank of England meeting – monetary policy is expected to remain unchanged. The UK economy continues to be quite fragile with August production data showing a slump yesterday, countering the positive PMI results we have seen over recent months.
Key events:
ECB monthly report at 9.00am
Italian industrial output for August at 9.00am. Expected up 0.7 per cent, from -1.1 per cent.
Bank of England interest rate decision at 12.00pm. Expected to remain unchanged at 0.5 per cent.
US initial jobless claims (Oct 4) at 1.10pm. Expected at 310,000, up from 308,000.
Fed's Bullard speech at 2.45pm.