LONDON (Alliance News) - UK shares set to open higher Wednesday, with investors mainly focused on the conclusion of the US Federal Reserve meeting late in the day, before which are the presentation of the UK government budget and publication of Bank of England minutes.
The Bank of England releases the minutes from its most recent monetary policy committee meeting at 0930 GMT, while Chancellor of the Exchequer George Osborne is set to present the UK's government budget at 1230 GMT. Osborne is expected to announce further measures to help investment in the North Sea and a further shakeup of the annuities market in his speech to Parliament.
The Fed's Open Market Committee meeting concludes at 1800 GMT, with a press conference by Chair Janet Yellen starting at 1830 GMT. Focus will be on whether the FOMC removes its language about being "patient" before raising interest rates.
"It it widely expected that the central bank [The Fed] could change its forward guidance language, and raise the prospect of a rate hike in the next couple of months," says Michael Hewson, chief market analyst at CMC Markets.
IG futures indicate the FTSE 100 to open 8.4 points higher at 6,845.4. The index closed Tuesday up 0.5% at 6,837.61 for a second consecutive day. Even though stock indices in Europe and the US retraced some of the strong gains made on Monday, the blue-chip index was supported by oil-related stocks and miners after months of under-performance, with oil prices still remaining under pressure.
Brent crude is quoted at around USD53.01 a barrel Wednesday, and US benchmark West Texas Intermediate is quoted at USD42.51 a barrel. Gold is quoted early Wednesday at USD1,149.48 an ounce.
Wall Street ended mixed Tuesday. The DJIA closed down 0.7%, the S&P 500 ended down 0.3% and the Nasdaq Composite outperformed, up 0.2%.
In Asia on Wednesday, the Japanese Nikkei 225 closed up 0.6%, and the Hang Seng trades up 1.2%. The Shanghai Composite is trading up 1.9%.
Also in the economic calendar Wednesday, the UK ILO unemployment rate is due at 0930 GMT, while eurozone trade balance is at 1000 GMT. In the US, EIA crude oil stocks change is at 1430 GMT.
In the corporate calendar Wednesday, Phoenix Group Holdings, Hochschild Mining, Bioquell, UTV Media, Cape and Burford Capital release full-year results. Smiths Group publishes half-year results, while Imagination Technologies Group issues a trading statement.
By Daniel Ruiz; danielruiz@alliancenews.com
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