Stocks called to end turbulent week higher

03/17/2023 | 07:00am GMT
Source: Marketscreener.com
Modified for B2 level

London stocks are expected to start higher on Friday, due to recent moves by US policymakers to soothe concerns in the banking sector.

This week, banking shares have experienced a tumultuous time, following the collapse of Silicon Valley Bank and liquidity worries at Credit Suisse. While shares managed to rebound on Thursday, they are still on course for a weekly loss. 

Futures are indicating that the FTSE 100 index will open 0.6% higher on Friday. Asian stocks have seen an increase in share value.

In the US, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw significant gains on Thursday.

While Asian markets have remained cautious, there is still headline risk that could upset markets, especially over the weekend when traders cannot react. The uncertainty around the Fed policy reaction function is also keeping rate volatility high.