London stocks were set to rise at the open on Wednesday following a positive close on Wall Street, as investors digest the latest comments from US Federal Reserve chair Jerome Powell. The FTSE 100 was called to open 40 points higher at 7,904.
CMC Markets analyst Michael Hewson said: “European markets underwent a mixed session yesterday constrained somewhat by uncertainty ahead of scheduled comments from Fed chairman Jay Powell, where he was expected to strike a slightly different and more hawkish tone in the wake of Friday’s bumper US jobs report.
“Despite the uncertainty the comments were a bit of a damp squib, with Powell reiterating his comments about disinflationary trends being seen, while also insisting that the Fed still has some way to go to get inflation back to target, and that it could take until next year to do so.
“In short Powell’s comments were only slightly more hawkish than his press conference remarks, however US markets didn’t seem to care that much, finishing the day strongly higher even as bond yields remained steady at their recent highs.
“This resilience in the US looks set to translate into a positive European open later this morning.”
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.