FTSE 100 Set to Make a Flat-To-Soft Start Ahead of Fed Reserve Meeting

Published 16-03-2021, 01:46 pm

London’s key index FTSE 100 is expected to open on a flat-to-soft note on Tuesday, 16 March, tracking lower FTSE 100 March futures even as Asian equities were up boosted by positive US market sentiment ahead of the Fed meeting.
The index last closed at 6,749.70, down by 0.17 per cent after France, Germany and Italy added to the list of countries pausing the rollout of AstraZeneca (LON:AZN) shots due to blood clotting fears on Monday. However, the pharmaceutical company’s shares were not impacted by the move and ended higher by 0.39 per cent.

Asian markets in the green

Asian equities were mostly up on Tuesday, boosted by US markets closing at record highs on Monday due to optimism surrounding US economic recovery ahead of the Federal Reserve meeting. Japan’s key index Nikkei 225 was up by 0.47 per cent, China’s Shanghai Composite Index was up by 0.58 per cent. Hong Kong’s key index Hang Seng was trading in the green, up by 0.55 per cent, while South Korea’s Kospi Composite index jumped 0.59 per cent.

India’s Nifty 50 rose by 0.59 per cent, and Australia’s ASX 200 ended higher by 0.80 per cent earlier today.

The March futures linked to the FTSE 100 were down by 0.17 per cent as of 16 March at 0454 AM GMT, indicating a flat-to-soft start to the London markets. 

Two of the major indices of the US, Dow Jones and the S&P 500 index ended at record highs on Monday due to investors shaking off economic recovery concerns. The 10-year Treasury yield also declined ahead of the Fed’s meeting, awaiting policy cues.

It was Dow’s sixth straight record high close due to the passing of the US $1.9 trillion covid relief bill and mass vaccinations. The Dow Jones Industrial Average last closed up by 0.53 per cent, while the S&P 500 index ended 0.65 per cent higher on Monday. Meanwhile, the Nasdaq Composite closed up by 1.05 per cent.

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