FTSE called higher as US rate rise, manufacturing data lifts global markets

FTSE 100 is expected to build on yesterday's steady gains, boosted by another record close on Wall Street after minutes from the Fed showed the committee voted to increase the benchmark interest rate to 1.5% from 1.25%.

At around 6:15am, the FTSE 100 was called 12.2 points higher at 7,688.1 by the spread betting firms.

The stateside rate rise signalled increased confidence in the growth outlook for the US and the wider global economy, which led Asian stock markets higher this morning.

US monetary policy makers also increased GDP estimates for 2018 to 2.5% from 2.1% but warned of uncertainty over the potential economic impact of Trump's tax overhaul.

In addition, US manufacturing PMI registered 59.7 in December, up from 58.2 in the previous month, highlighting increased momentum in the manufacturing sector.

Closer to home, traders will be assessing the impact of a raft of economic releases including services PMI data, monetary supply and net lending figures along with the latest mortgage approval numbers.

OVERSEAS MARKETS

In the US overnight, the Dow Jones Industrial Average closed 98.67 points (0.40%) higher at 24,922.68.

The broader-based S&P 500 added 17.25 points (0.64%) to end at 2,713.06 and the tech-focussed NASDAQ gained 58.63 points (0.84%) to 7,065.53.

Heading into the close, the Hang Seng was 218.49 points (0.71%) higher at 30,779.44 and the Nikkei 225 resumed trading with a bang following an extended break, rising 688.67 points (3.03%) to 23,453.61.

The Shanghai Composite mirrored gains elsewhere in Asia, advancing 19.59 points (0.58%) to 3,388.70.

COMMODITIES

At around 6:05am, WTI was up 0.81% at $62.13 per barrel and Brent was 0.44% higher at $68.14 per barrel.

Gold was 0.59% softer at $1,310.70 an ounce, silver was down 1.03% and copper was 0.43% higher.

LONDON MARKETS

Trading Statements: International Consolidated Airlines Group.

AGM's / GM's: Cambria Automobiles and Xafinity.

Economic Releases: Monthly M4 Money Supply, Monthly Net Lending to Individuals, Services PMI and Mortgage Approvals.