FTSE 100 to open higher, shrugging off the weak form in the US. Some focus on the Fed as the policy meeting kicks off today.

The FTSE 100 is set to open higher this morning, shrugging off the weak form in the U.S. with investors keeping one eye on the interest rate decisions. The Federal Reserve’s policy meeting kicks off today.

At 07:00, FTSE 100 futures contract was up 0.7% and the Dax futures were trading 0.7% higher.

Some investors seem to have confidence that the Fed will offer a treat and slow the pace of rising interest rates in the future. Stocks have been showing the strongest levels in just over a month, hence where the confidence stems from.

However, that being said, there is little sign that inflation is peaking in Europe. Christine Lagarde, President of ECB, already stated in an interview today that the peak of the current cycle of interest rate hikes must ensure that inflation returns to the 2% point over the medium term.  Eurozone consumer prices rose by 10.7% last month compared to 9.9% in the prior month, suggesting ECB still has some decisions to make regarding the rates.

The U.K. manufacturing PMI data is due later today. It is estimated to show that this sector of the UK’s economy remained in contraction in October.

Furthermore, Asian stocks edged higher as bond yields eased slightly in the early hours of today’s session following losses on Wall Street. Hong Kong’s Hang Seng index rose 4.3% while the Hang Seng Tech Index climbed 6.4%.

Oil prices advanced in the early hours, recovering losses from the previous session as the weaker dollar helped boost the confidence that has been impacted by China’s lockdowns due to Covid-19.

Events happening today:

1. Pfizer earnings

• The pharmaceutical company is estimated to report an EPS of $1.44 on revenue of $21.3 billion. Investors will also be listening to comments on sales of Covid drugs and vaccines.

2. Uber Tech

• Uber is expected to report an EPS of -$0.175 on revenue of $8.12 billion.

3. Toyota Motor ADR

• The automaker is expected to report earnings of $3.66 a share on revenue of $63.82 billion.

4. JOLTs job openings

• The report is due at 14:00 GMT. Experts are expecting the report to read 10 million openings in September.

(Sources: investing.com, reuters.com)