“This set a downbeat tone to what could be a defining week for the markets as some of the biggest US companies report their second quarter earnings and the US Federal Reserve delivers its latest update on interest rates and financial stimulus,” says AJ Bell financial analyst Danni Hewson.
“That meeting on Wednesday isn’t expected to see any rate increase but could see at least the suggestion of a tapering of support for the economy as the Fed weighs inflation risks,” Hewson added.
A second estimate of US GDP for the second quarter will also draw attention later in the week, while a number of major UK companies are set to report, including the banks.
“Expectations for the UK banking sector have been lifted in recent weeks by a strong showing from their American cousins and the decision to give them the green light to start paying dividends again. These heightened expectations could be tough to match.”
FTSE 100 Top Movers
Miners Antofagasta (1.64%), Rio Tinto (1.64%) and Anglo American (1.16%) are leading the way on the FTSE 100 one Monday.
While trailing the pack of UK companies is HSBC (-1.83%), Standard Chartered (-1.74%) and Vodafone (-1.62%).