AM Analysis
Global markets are set for a fairly flat open this morning
Global markets are set for a fairly flat open this morning as investors cautiously enter the session due to the FOMC statement released this evening, often causing high levels of volatility. Throughout the night, markets in Asia had a quiet session with investors again not being spooked by the geopolitical issues that currently surround Russia. Investors seemed to find firmer ground as Vladimir Putin spoke out and said nothing too drastic, giving a window of opportunity for the bulls to come out.
Economic data could be the key mover in global markets today with GBP unemployment rate, MPC Official Bank Rate Votes, MPC Asset Purchase Facility Votes and Claimant Count Change all being released at 09.30am this morning, followed shortly by the important annual budget release. Further into the evening, the FOMC statement will be released with consensus believing it will cut a further $10 billion from its quantitative easing programme; therefore we can expect global markets to be quite jittery upon the release of this statement.
– Sam Fox
PM Analysis
FTSE futures remain little changed following a two day rally
FTSE futures remain little changed following a two day rally as investors remained stagnant ahead of comments from Federal Reserve Chair Janet Yellen. Geopolitical concerns in Ukraine continue to intensify in the background after the country’s forces failed to withdraw from Crimea after the region voted to join Russia. Russian President Vladimir Putin signed a treaty to make Crimea part of Russia and although this has gone down reasonably smoothly, investors are concerned that tensions could easily escalate.
US futures are trading with small gains ahead of the Federal Open Market Committee and press conference. The Fed is not expected to deviate from its policy path, continuing to reduce their bond-buying programme. Although a reduction in their bond buying programme is priced into the markets, market participants will keep a close eye on any comments of future cuts as well as any sign of an interest rate hike.
British unemployment rate remained steady, coming in at 7.2 percent. The rate was identical to that figure announced in February the office for National Statistics said in London today. Monthly jobless claims narrowed, falling 34,600.
– Lee Mumford
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