Financial bookmakers are expecting the FTSE 100 to open higher today after soaring 119 points (2.1 percent) on Thursday on the back of the European Central Bank’s (ECB) announcement of an unlimited bond buying programme.
Britain’s blue chip index is set to start at 5,787, up 10 points (0.15 percent) from yesterday’s close.
Under the plan, the ECB will buy an unlimited amount of sovereign bonds to bring down borrowing costs of struggling euro zone nations such as Italy and Spain, which would have to request aid from Europe’s bailout funds.
“Peripheral European bonds yields immediately shot lower following the ECB president’s press conference, which, in turn, loosens the noose around the struggling sovereigns,” said analyst at forex.com Chris Tedder.
“In other words, the ECB’s bond buying program attacks the core of the European debt crisis by relieving some of the pressure on struggling European nations.”
Traders are now looking to today’s crucial non-farm payrolls data for August, which could determine whether the Federal Reserve launches a third round of quantitative easing to shore up the recovery.
According to a Reuters survey, the report may show that the US economy created 125,000 jobs last month following a gain of 163,000 in July, while the unemployment rate is expected to hold steady at 8.3 percent.
Across the Atlantic, the Dow Jones Industrial Average (DJIA) soared 244 points (1.85 percent) to end the day at 13,292 and the broader S&P 500 index jumped 28.5 points (2.05 percent) to close at 1,432.
Likewise, Asian markets were in buying mode today. Japan’s Nikkei 225 index stood 174 points (two percent) higher at 8,855 late in the session, while China’s Shanghai Composite Index added 82 points (four percent) to reach 2,134.