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FTSE 100 to head lower ahead of Fed meeting

July 29, 2020

FTSE 100

The FTSE 100 is expected to open lower on Wednesday as markets have shown little movement ahead of the Fed meeting later during U.S. session.

The FTSE 100 is expected to open around 31 points lower after ending Tuesday’s session up 24 points at £6,129.

With COVID cases on the rise across the US and other parts of the world, including China and Spain, with lockdown relaxation measures being re-imposed in several U.S. states to counter the spread ahead of flu season in the Autumn. Eyes will be even more firmly focused on this latest Fed meeting.

In addition to the Federal Reserve, traders will also be looking on for any signs of progress in the U.S. Congress over a new package of stimulus measures as confidence in the economic recovery begins to crumble amid signs the American economy may be stalling. Other issues could arise as tech giants Apple, Facebook, Amazon, and Google’s parent company, Alphabet, face Congress in anti-trust hearings over their dominance in the market.

This nervousness helped US markets close lower overnight, with the Dow Jones falling 0.77% to $26,379, while the S&P 500 dropped 0.65% to $3,218 and the Nasdaq falling by 1.27% to $10,402.

Negative sentiment in the Asian markets also led to a lower session on Wednesday, with the Japanese Nikkei 225 down 1.2% while Hong Kong’s Hang Seng fell 0.16%.

On the currency markets, the GBP was slightly down by 0.1% at $1.2916 against the USD, although upcoming UK mortgage lending data create some more movement as a clearer picture of the state of the British economy will be visible

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