FTSE 100 set for modest recovery after yesterday's heavy fall

After yesterday’s heavy fall, the Footsie looks set to dust itself down and open higher ahead of retail sales data at 7.00am. Spread betting quotes indicate that London’s index of heavyweight shares will open at around 6,025, clawing back 12 of the 99 points surrendered yesterday. In the US, the NASDAQ Composite once again rose to a new high on the back of enthusiasm for all things tech, while even the old warhorse, the Dow Jones, managed a 47 point gain at 27,740, as investors shrugged off the Federal Reserve’s cautious comments on Wednesday regarding the severe impact the coronavirus pandemic could have on the US economy. The S&P 500 advanced 11 points to 3,385. In Asia this morning, the Nikkei 225 in Tokyo and the Hang Seng in Hong Kong are both on the up. The former is 85 points (0.4%) higher at 22,965 and the latter is 332 points (1.3%) firmer at 25,123. “At 7am (UK time), British retail sales will be posted and the monthly July reading is tipped to be 2%, and that would be a big drop from the 13.9% posted in June. The report that strips out fuel is tipped to be 0.2%, which would be significantly lower than the 13.5% registered in the previous report. It is worth noting the latest CPI [consumer price index] and core CPI reports jumped, but so demand is firm. It is possible the retail sales numbers could be more bullish than expected,” said David Madden of CMC Markets. “At the same time, the UK public sector net borrowing figure will be published and economists are expecting it to be £29.3 billion, down from £34.8 billion in the previous report,” he added. Around the markets Sterling: US$1.3246, up 0.32 cents 10-year gilt: yielding 0.227%, down 1.19 basis points Gold: US$1,956.20 an ounce, up US$9.70 Brent crude: US$45.07 a barrel, up 17 cents Bitcoin: US$11,874, up US$3