Traders await UK Budget

In mid-morning trading the FTSE 100 is down 10 points as traders await the UK Budget.

Today is a big day for the UK and the US; George Osborne will reveal the Budget for 2014 and the Federal Reserve will make its latest announcement, the latter having more of an impact to the markets. The consensus is for a taper of $10 billion from the Fed, and we are back to the days of good news being good news. Traders have accepted that the US economy no longer needs as much support, and only a taper of $15 billion would rock the boat. 

Chilean copper miner Antofagasta is in the red for a second day, as traders continue to ignore the hike in dividend and focus on the falling profits. 

The homebuilders are in positive territory after Mr Osborne made it clear the Help to Buy scheme will be extended until the end of the decade. 

It’s all quiet on the eastern front as Vladimir Putin stated he does not plan to send additional troops into Crimea. The lack of violence in the region has been welcomed by traders. 

Yahoo will be keeping an eye on Alibaba as it holds a 24% stake in the Chinese e-commerce titan. IG clients are indicating Alibaba will have a market capitalisation of $250 billion, making it the highest-profile listing since Facebook. Just Eat is jumping on the IPO bandwagon; our clients are hungry for stock market flotations and are estimating the market capitalisation will be £1.27 billion. 

In the US, we are expecting the Dow Jones to open six points lower at 16,330, as traders sit on their hands ahead of the Fed meeting tonight. 

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