FTSE dips below 7400, investors eye British Manufacturing PMI and FOMC statement

The FTSE index is in red territory on Tuesday. In the North American session, the pair is at 7,418, down 0.29% on the day.  On the release front, British GfK Consumer Confidence remained pegged at 13 points for a third straight month. Later, the U.K. releases the BRC Shop Price Index. On Wednesday, the U.K. releases Manufacturing PMI and Net Lending to Individuals. Investors will be keeping a close eye on the Federal Reserve, which will wind up its monthly meeting and issue a rate statement.

The FTSE is showing some signs of slowing down, after recording a rare losing week. Still, it’s been a strong April for the index, which has climbed close to 2.0%. The economic outlook for the U.K. is uncertain, has consumers remain in a gloomy mood. Brexit has been delayed but not resolved and recent economic data has been lukewarm. Still, the FTSE has been largely immune to these concerns and has sparkled in 2019, with gains of 9.5 percent.

The Federal Reserve has said it expects to hold interest rate levels for the rest of the year, and the most recent inflation numbers will reinforce that stance. The Core PCE Price Index, which is the Federal Reserve’s preferred gauge for inflation, came in at 0.0% in March and 0.1% in February (the two events were released on Tuesday due to the government shutdown earlier this year). On an annualized basis, the indicator gained 1.6%, just shy of the estimate of 1.7%. There was better news from consumer spending, which jumped 0.9% in March, compared to the estimate of 0.7%. The strong reading was a result of increased spending on motor vehicles and health care.

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Economic Calendar

Monday (April 29)

• 19:01 British GfK Consumer Confidence. Estimate -12. Actual -13

Tuesday (April 30)

• 3:40 British MPC Member Ramsden Speaks
• 19:01 British BRC Shop Price Index

Wednesday (May 1)

• 2:00 British Nationwide HPI. Estimate 0.1%
• 4:30 British Manufacturing PMI. Estimate 53.2
• 4:30 British Net Lending to Individuals. Estimate 4.5B
• 14:00 US FOMC Statement
• 14:00 US Federal Funds Rate. Estimate <2.50%
• 14:00 FOMC Press Conference

*All release times are DST

*Key events are in bold

FTSE, Tuesday, April 30 at 11:00 DST

Previous Close: 7,440 Open: 7,440 High: 7,392 Low: 7,456 Close: 7,418

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