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FTSE 100 to start higher following fresh records on Wall Street; UK spending review eyed


The FTSE 100 is expected to open higher on Wednesday morning following a record session for US markets on Tuesday.

Spread-better IG expects the FTSE 100 to start around 25 points higher after ending Tuesday’s session up 98 points at 6,432.

Expectations of a positive start followed a record-breaking session for Wall Street overnight, with the Dow Jones Industrial Average rising 1.54% to close at a record high of 30,046. The S&P 500 also set a new record, closing 1.62% higher at 3,635, while the Nasdaq climbed 1.31% to 12,036.

The optimism was bolstered by the official start of the presidential transition despite Donald Trump still refusing to officially concede. Meanwhile, traders will be eyeing US GDP and durable goods orders later today for more positive news.

Things were also looking upbeat in Asia this morning, with Japan’s Nikkei 225 up 0.54% while Hong Kong’s Hang Seng rose 0.4%.

On currency markets, the pound was slightly off against the dollar, down 0.11% at US$1.334, although sterling could see some movement catalysts as Chancellor of the Exchequer Rishi Sunak delivers his spending review to the House of Commons later today.

The review will outline the government’s spending plans for the year ahead of the UK looks to recover from the effects of the pandemic, while the Chancellor is also expected to reveal the latest public finance and economic forecasts from the Office for Budget Responsibility (OBR).

Around the markets:

Sterling: US$1.334, down 0.11%

Brent crude: US$48.19 a barrel, up 0.69%

Gold: US$1,804 an ounce, down 0.09%

Bitcoin: US$18,931, up 3.55%

6.45 am: Early Markets: Asia / Australia

Asia-Pacific markets were mixed today following a record session on Wall Street as COVID-19 vaccine hopes and reduced uncertainty in US politics boosted investor sentiment.

In Japan, the Nikkei 225 gained 0.50% while the Hang Seng index in Hong Kong advanced 0.16%.

However, South Korea’s Kospi dipped 0.62% and China’s Shanghai composite was down 1.02%.

Over in Australia, the S&P/ASX 200 lifted for a third day, with the index up more than 12% this month.


Proactive Australia news:

Emyria Limited (ASX:EMD) has launched its initial drug development program focused on mental health following deep analysis of its real-world evidence (RWE) generated from more than 3,000 patients.

Chalice Gold Mines Limited’s (ASX:CHN) (OTCMKTS:CGMLF) (FRA:C8U) successes of the past year have set a very strong platform for the company to continue growing on the back of its world-class multi-commodity discovery at Julimar, 70 kilometres northeast of Perth, Western Australia.

engage:BDR Ltd (ASX:EN1) has received firm commitments to raise around $2.37 million via the placement of 430,888,917 fully paid ordinary shares at 0.55 cents per share.

Brookside Energy Ltd (ASX:BRK) and Stonehorse Energy Ltd (ASX:SHE) have completed a successful workover of the Mitchell 12-1 Well which provides the Orion Joint Venture with another cashflow stream within the southern part of the SCOOP Play in Oklahoma’s Anadarko Basin.

White Rock Minerals Ltd (ASX:WRM) is encouraged by results to date from the maiden exploration program at Last Chance Gold Target in Alaska that are expected to result in an aggressive follow-up drill campaign in 2021.

Australian Vanadium Ltd (ASX:AVL) (OTCMKTS:ATVVF) (FRA:JT71) has signed a memorandum of understanding (MOU) with ATCO Australia for the supply of green hydrogen for AVL’s planned processing plant near Geraldton.

Anson Resources Ltd (ASX:ASN) (FRA:9MY) is powering ahead with the study and permitting process for its flagship Paradox Brine Project in the US while also assessing prospects in Western Australia.

Linius Technologies Ltd (ASX:LNU) has launched a new product in the video conferencing and enterprise collaboration markets called WHIZZARD, that is now integrated with Zoom, Webex Meetings and Microsoft Teams.

AO World – back above 400p and back to being overvalued again?

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