London pre-open: Stocks to soar after Federal Reserve statement
Updated : 07:53
UK stocks were set to surge when markets open on Thursday morning following massive gains on Wall Street as investors reacted to comments from the Federal Reserve.
City sources predict the FTSE 100 will open around 110 points higher than Wednesday’s close of 6,336.48.
US markets jumped late on with the S&P 500 and Dow Jones Industrial Average having their best one-day performance of the year, up 1.7% and 2.1% respectively, after the Fed modified its forward guidance regarding interest rates.
The central bank changed its “considerable time” language and instead said it “can be patient” about tightening. Fed char Janet Yellen said she doesn’t see the Fed raising rates for “at least the next couple of meetings”.
“June still looks like the most ripe date for a first rate hike, which means another shift in forward guidance could come in March,” said analysts at BNP Paribas.
Stocks to watch
Stock exchange operator London Stock Exchange (LSE) said it has made ”good progress” over the course of 2014, with strong performances across all main business areas. Some £41bn of equity capital was raised on LSE’s markets during the 11 months to 30 November, compared with £26.7bn the year before, while new issues jumped by 38%.
British pharmaceutical giant AstraZeneca has received marketing authorisation from the European Commission for its Lynpaza capsules. The firm said the drug will be used in the maintenance treatment of adult patients suffering from epithelial ovarian, fallopian tube, or primary peritoneal cancer who are in complete response or partial response to platinum-based chemotherapy.
Civil engineering group Balfour Beatty has reached financial close and completed the acquisition of the £164m Thanet offshore transmission project in the UK, in which it will invest over £20m of equity. The project, previously run by Vattenfall, is the high-voltage electricity transmission system connecting the 300 megawatt Thanet wind farm, off the coast of Kent, to the on.