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FTSE 100 to kick week off in positive mood; Asia markets mixed

Published: 01:22 12 May 2014 EDT

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The FTSE 100 is expected to kick the week off in a positive mood – although analysts warn it may be difficult to maintain the upward momentum both in here in the UK and the US.

A mixed picture emerged from Asia overnight. The Nikkei 225 fell 0.35% following worse than expected trade data, while the Chinese bourses firmed as the country’s State Council hinted at significant financial reforms.

“China is looking to open up capital markets further, which would ultimately see an increase in both inward and outward investment,” explained Stan Shamu, market analyst at the spread-betting group IG.

The Shanghai Composite advanced 1.9%, and the Hang Seng in Hong Kong was up 1.7%.

We’ll get a better idea of the economic strength of the world’s largest economy on Tuesday when April’s trade and retail sales data is unveiled.

Here in the UK, IG is a predicting the FTSE 100 will rise 12 points on open to 6,816.57.

However Michael Hewson, analyst at CMC Markets, wonders just what will keep the equity markets airborne, particularly with worries over Ukraine bubbling just below the surface.

“While another record finish on the Dow at the end of last week will inevitably grab the headlines it is becoming increasingly difficult to establish a clear directional of travel for equity markets, not only in the US, but in Europe as well against a back drop of continued unrest in Ukraine, as well as concerns about a slowdown in the Chinese economic growth model,” he said.

The big scheduled corporate news comes from Land Securities and British Land, the nation’s top property developers, as well as TUI travel.

Pfizer’s hostile pursuit of AstraZeneca will no doubt receive more column inches this week as the rhetoric ramps up and the real behind-the-scenes horse-trading begins.


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