FTSE follows Wall Street downward

In mid-morning trading the FTSE 100 is down 25 points, as traders are nervous ahead of reporting season.

In London, equities have followed Wall Street lower after Dennis Lockhart stated his support for additional tapering. Added to that we have the mix of soft payrolls figures and an underwhwelming start to the US reporting season.

Barratt Developments’ figures weren’t good enough to win over investors. The homebuilder is off over 1% depite reporting a 19% increase in home completions. Michael Page is in the red after the recruiter eked out a small increase in fourth-quarter gross profits. Its UK business is showing signs of recovery.

ASOS’s stellar Christmas season gave traders the perfect reason to lock in profits. The online retailer revealed a 37% increase in revenue.

The cost of living in the UK dipped as the inflation rate fell to 2% in December, which is music to Mark Carney’s ears but may not be welcomed by the high street.

In the US, we are expecting the Dow to open 20 points higher at 16,280 as dealers gear up for JPMorgan's fourth-quarter earnings this lunchtime.

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