The FTSE 100 is expected to open nearly unchanged from Wednesday’s closing level of 5,683 as investors prefer to stay on the sidelines ahead of today’s policy announcements by central banks.
The Bank of England is expected to extend its £325 billion quantitative easing programme by a further £50 billion, while the European Central bank (ECB) will likely slash its interest rate of one percent.
“It is clear that after such a strong start to the new financial year, investors prefer to wait and see the outcome and reaction to the ECB and BoE’s policy decisions,” said chief market strategist at IG Group Chris Weston.
“Others are sure to be happy to wait an additional day to see what the US non-farm payrolls report reveals, with another weak number certain to intensify calls for more stimulus measures from the Fed.”
In the US, the Institute for Supply Management (ISM) will release its services PMI index for June and the Department of Labor will report its weekly jobless claims data ahead of tomorrow’s all-important non-farm payrolls figures.
In addition, the Department of Energy will update the markets on US crude inventories.
Earlier this week, the American petroleum Institute (API) said America’s crude stocks shed a massive three million barrels last week.
Asian markets were in selling mode today. Japan’s Nikkei 225 index was down 21 points (0.25 percent) at 9,083 at the end of the session and China’s Shanghai Composite Index declined 30 points (1.4 percent) to 2,196.