Despite overnight losses on Wall Street, the FTSE 100 is expected to open higher today thanks to a positive lead from Asian markets. The UK’s blue chip index is set to open at 5,670, up eight points (0.15 percent) from Monday’s close.
US stocks were hit by disappointing retail sales data, which showed a 0.5 percent decline for June compared with expectations of a 0.2 percent increase, but stocks in Japan rose today after the International Monetary Fund (IMF) raised its growth forecasts for the country.
The IMF now expects Japan’s GDP to expand 2.4 percent this year, up from 0.4 percent previously.
However, the IMF also reduced its global growth forecast to 3.9 percent from 4.1 percent.
“Overnight, US retail sales data printed much softer than expected, reinvigorating calls for more QE,” said analyst at forex.com Chris Tedder.
“Also, the IMF downgraded its growth forecasts for the global economy, flagging three key risks; the European debt crisis, the US fiscal cliff and a potential hard landing in China. In other words, the same factors adversely affecting investor sentiment for at least the last 12 months.”
Today’s macroeconomic calendar will include the ZEW institute’s survey of German business sentiment and US consumed price inflation data for June.
According to UBS, the report may show no change from 1.7 percent in May.
In the US, chairman of the Federal Reserve Ben Bernanke will start delivering his two day semi-annual testimony to the US Congress.
Across the Atlantic, the Dow Jones Industrial Average (DJIA) declined 50 points (0.4 percent) to close at 12,727 and the broader S&P 500 index shed three points (0.25 percent) to end the day at 1,353.
In Asia, Japan’s Nikkei 225 index tacked on 49.5 points (0.55 percent) to reach 8,773 and China’s Shanghai Composite Index rose seven points (0.35 percent) to 2,155.