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FTSE 100 set for a tepid start; investors on Fed alert

Published: 16:41 29 Mar 2016 AEDT

landscape picture of Fed chairman Janet Yellen

The FTSE 100 is set to make a rather tepid start to the week with US interest rate policy set to dominate investor sentiment.

The spread betters are predicting the index of blue chip stocks will open seven points higher at 6,113.48.

A speech later by the US Federal Reserve chair, Janet Yellen, will be picked over for meaning and pointers after some increasingly hawkish comments from other central bank officials.

Weaker than expected inflation and consumer spending figures from the States overnight has taken a little heat out of the debate.

“Ultimately if the Fed is data dependant as they claim then for all the bluster about an increase in rates and April being a live meeting it is hard to see how a rate rise can be justified based on yesterday’s data,” said Michael Hewson, analyst at CMC Markets

Yet while Wall Street finished flat, Asia was hit by worries that Yellen could still hit the button and increase US base rates.

The Shanghai Composite led the retreat, falling 1.3%. Japan’s Nikkei index lost 0.3% and the Hang Seng in Hong Kong was flat.

Here in the UK it is expected to be a quiet week for corporate news with Moneysupermarket, British Land and the travel firm TUI among those companies slated to report.

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