London pre-open: All eyes on MPC, central banks
Stocks were being called to start the day slightly higher ahead of a busy for central bank watchers.
Both timely and opportune, at noon the Monetary Policy Committee will announce its interest rate decision. That will be followed by the release of the minutes of its meeting which will help to shed real-time light on today's decision.
Later in the day, the European Central Bank and US Federal Reserve will release their own meeting minutes. Those are now dated but should nevertheless prove quite insightful.
The Footsie was expected to start the day seven points higher from Wednesday's closing level of 6,336.35.
Overnight, the Shanghai Stock Exchange's Composite Index resumed trading after a week-long recess, rising by 3.14% to close at 3,148.72.
"Given that the FOMC decision came weeks before the jobs report and that Fed Fund futures prices are now pricing in a less than 40% chance of a hike this year, the reaction to the FOMC minutes may be skewed much more in favour of the doves this evening. Any increased hawkishness may have since been offset by those poor labour market figures, particularly those showing no wage growth, while a more dovish or cautious tone will be seen to support the view that the rate hike will be put on hold until next year, in light of the recent data.
"Whichever it is, the Fed has a big job on its hands communicating its message clearly because as it stands, the market clearly isn’t buying the message that rates will rise this year despite to constant warnings," wrote Craig Erlam, Senior Market Analyst at Oanda.
Satellite-maker charts clear flight path
Inmarsat is reiterating its financial guidance for the year ahead of its Capital Markets Day. The FTSE 100 company on Thursday said there’s no material change in the trading environment or the group’s performance. It highlighted that group revenue for the year is expected to be between $1.25bn and $1.3bn, including revenue of $70m expected from LightSquared. The company said capex for the full year is expected to be in the range of $450m to $500m.
Paper and packaging company Mondi posted a 27% rise in underlying third-quarter profit following a good performance from all its business units. Underlying profit increased to €221m from €174m a year earlier and the company noted strong incremental contributions from Packaging Paper, Uncoated Fine Paper and the South Africa division.
Galliford Try has been appointed to support the £150m sitewide redevelopment of Luton and Dunstable University Hospital. The FTSE 250 company announced on Thursday has been appointed preferred supply chain partner under the ProCure21+ framework. The housebuilding and construction group said the main programme, which will be completed in 2019 includes a new £80m block for all critical care, surgery and other complex care procedures.