UK markets are expected to rebound today with the MPC last night attempting to end speculation of a rates hike reaffirming its intent to hold rates until unemployment reaches 7%. European market sentiment could also provide a boost after German Chancellor Angela Merkel announced her policy on Europe would not change after being elected to her third term.
New members to the FTSE 100 are hoping to bounce back after disappointing debuts from Coca Cola HBC and Sports Direct. A possible spanner in the works today could be Ed Miliband’s announcement of plans to raise corporation tax should Labour win the 2015 election; benefits to small businesses are the main selling point.
Uncertainty about Fed policy is causing volatility in the markets after senior member William Dudley played down the prospect of tapering claiming the US economy is still not capable of being self-sustaining. This uncertainty caused Copper to drop 0.7% and pushed the Nikkei down 0.1%, expect further volatility later today when Fed member George speaks.