LONDON, Aug 12 (Reuters) - Britain's FTSE 100 .FTSE is seen opening mixed
on Wednesday, between 3 points lower and 7 points higher, according to financial
bookmakers, with the market set to be cautious ahead of the release of UK
unemployment numbers and the latest Bank of England inflation report.
The blue chip index is expected to open between 0.1 percent lower to 0.2
percent higher, after closing 50.86 points lower at 4,671.34 on Tuesday.
UK claimant count unemployment is seen rising by 25,000 in June, after a
23,800 increase in the previous month, taking the umeployment rate up to 7.7
percent, from 7.6 percent in May, when the numbers are released at 0830 GMT.
At 0930 GMT, the Bank of England will publish quarterly growth and
inflation forecasts, which should shed light on its surprise decision last week
to pump more money into the economy.
The BoE could leave the door open to more quantitative easing if its
forecasts suggest weak economic growth will leave inflation below target for an
extended period.
Later on the focus will switch to the United States and the outcome of the
latest rate-setting Federal Reserve Open Market Committee meeting.
The Fed is expected to hold rates near zero when it makes the announcement
at 1815 GMT and let a $300 billion programme to buy Treasury securities expire
on schedule in September as economic gloom lifts.
But after a report showing U.S. firms continue to cut inventories as they
lack confidence in the economy, analysts expect the Fed will try to dampen
speculation about higher interest rates while still supporting hopes that the
makings of a recovery are at hand.
Ex-dividends will knock 8.65 points off the FTSE index, with BP (BP.L), BT
Group (BT.L), Penon (PNN.L), RSA Insurance (RSA.L), Schroders (SDR.L), Standard
Chartered (STAN.L) and Standard Life (SL.L) all set to lose their payout
attraction.
* Asian shares fall in pre-Fed caution [ID:nT37536]
* Nikkei retreats from 10-mth highs, awaiting Fed [ID:nT166385]
* US STOCKS-Wall Street dragged lower by financials [ID:nN11403526]
* Yen rises as investors cut shorts before Fed [ID:nT39304]
* TREASURIES-Prices rise on stock slide, strong auction [ID:nN11590434]
* Oil steadies below $70 ahead of EIA stocks data, Fed [ID:nSP522193]
* PRECIOUS-Gold steadies at $950/oz, FOMC eyed; ETF [ID:nT44368]
* METALS-Shanghai copper down ahead of Fed decision [ID:nSHA34098]
