FTSE higher as central bank updates loom

In mid-morning trading the FTSE 100 is marginally higher as traders eagerly await updates from the Bank of England and European Central Bank.

Mario Draghi
Source: Bloomberg

Stocks in London are creeping higher as the press conference from the ECB is only a few hours away, and it will provide the long-awaited details about the quantitative easing programme.

Central banks have been the driving force behind the booming stock markets over the past few years and now it is the ECB's turn to flood the financial system with money. Eurozone equity markets are highly dependent on the stimulus package from the ECB and traders will be looking for Mario Draghi to give the green light signalling the next round of buying.

The Ashcroft poll puts the SNP well ahead of Labour in Scotland, and this could prove to be crucial for the Scottish nationalists come May as a hung parliament is looking likely.

IG is offering a number of binary bets on the UK general election and they suggest that the Conservatives and Labour will take 288 and 272 seats respectively. It also indicates the SNP will take 41 seats, which is a 10% increase on the day following the survey conducted by Lord Ashcroft.

Aviva announced a 30% increase in final dividend which is a good barometer of how successful Mark Wilson’s restructuring scheme has been in the past two years; however, Mr Wilson won’t be resting on his laurels as the transformation of Aviva is still underway, especially with the Friends Life acquisition yet to be completed.

Shares in Admiral are lower this morning after the company revealed a 4% drop in pre-tax profits. The insurer’s drop in profits was for the right reasons as the investment in its US business was to blame for not posting another set of record numbers.

The London Stock Exchange reaped the rewards of a strong stock market, higher trading volumes and a jump in IPOs helping the company achieve double-digit increases in adjusted pre-tax profit and revenue.

Across the pond we are expecting the Dow Jones to open unchanged from yesterday’s close, and the US index futures are expected remain muted in the run up to the ECB press conference where Mario Draghi will deliver the details of the bond buying programme.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.