The FTSE 100 is expected to open 20 points higher at 5998, according to CMC Markets. That would bring it within a whisker of the 6000 level the FTSE was last at in the middle of September.
GDP data out this morning was expected to come in at 4.6% growth for August, down on the 6.6% recorded in July. While slowing, that is still a strong growth figure, likely fuelled by the Eat Out To Help Out scheme but on the year the economy is still more than 7% weaker. Furthermore, it will fall sharply from here.
The impact of that on equities is mixed: on the one hand it will drive down share prices, but on the other it will push the Bank of England to continue its super-easy monetary policy, possibly increasing its government bond buying activities and creating negative interest rates which in turn force investors to buy shares in the search for a yield on their investments.
Oil rallied yesterday on the back of supply concerns after a hurricane hit the Gulf of Mexico, forcing oil rigs there to be evacuated. The region has 17% of US oil output, so the pause in supply pushed up crude prices, helping the likes of BP and Shell. Brent crude edged back this morning, falling 21 cents to $43.34 a barrel.
