Last checked at 
LONDON (Alliance News) - UK shares are set to open higher Wednesday following strong trading sessions in Asia and the US and ahead of the highly anticipated US Federal Reserve monetary policy decision after the close of London equity markets.
Futures indicate the FTSE 100 to open 27 points higher at 6,429.0. The index closed at 6,402.17 Tuesday.
US stocks closed Tuesday higher, with the DJIA gaining 1.1%, the S&P 500 up 1.2% and the Nasdaq Composite up 1.8%. Asia stocks are also posting strong gains with the Japanese Nikkei closing up 1.5%, while the Hang Seng in Hong Kong continues up 1.3%, and the Shanghai Composite up 1.5%.
The highlight of the day will be after the close of London markets with the release at 1800 GMT of the Fed's monetary policy decision. The US central bank has outlined, in previous meetings, that the end to its quantitative easing programme will be announced at the October meeting, but comments made by Fed member James Bullard in recent weeks suggesting the Fed could delay the end of the programme has placed some hope into the stock market.
"Although some members have argued that recent financial market turbulence and the prevailing lack of inflationary pressure justify a continuation of the programme, we do not believe this view will be shared by the majority. Consequently, we expect QE to come to a close," says Rhys Herbert, senior economist at Lloyds Bank.
The highest US consumer confidence figures in seven years, released on Tuesday, also will add some reassurance to those Fed members looking to put an end to QE in October.
FTSE 100-listed fashion and home goods retailer Next has issued a profit warning. It reported an increase in sales of 5.4% in the third quarter, falling short of its expectation of a 10% increase due to the unseasonably warm weather in October. "Whilst a cool August meant that the season started well, this was more than offset by much weaker sales in September and October," the company said. Next added it expects sales growth of 6% to 8% for 2014, down from its previous forecast of growth of between 7% and 10%, and cut its full-year pretax profit forecast to between GBP750 million and GBP790 million.
There also has been a third quarter production update from miner Antofagasta and a trading statement from financial services firm Standard Life.
FTSE 100 specialty chemicals group Johnson Matthey agreed a deal to buy the Energy Storage arm of Swiss chemicals company Clariant AG for USD75 million, with expectations the deal will close in early 2015. The Energy Storage business of Clariant is the largest hydrothermal lithium iron phosphate producer in the world. The lithium ion cathode material is used in electric vehicles and stationary battery applications.
In the rest of the economic calendar Wednesday, domestic news will dominate the morning with several releases from the Bank of England at 0930 GMT.
"In the UK we?ve...seen evidence of a slowdown in prices, and in lending as well, and this morning?s latest credit numbers are likely to reinforce that," says CMC Markets' chief market analyst Michael Hewson. "Mortgage approvals in September are expected to have slipped back to 62k from 64.2k, while consumer credit and net lending is also expected to have weakened from the numbers in August, reinforcing last night?s message from Deputy Governor of the Bank of England Sir Jon Cunliffe that interest rates were likely to stay lower for longer due to weak prices."
By Neil Thakrar; neilthakrar@alliancenews.com
Copyright 2014 Alliance News Limited. All Rights Reserved.
