FTSE 100 to start Thursday lower as sentiments drift from COVID-19 vaccine hope

The FTSE 100 is set to start Thursday on the backfoot as investors inevitably find distractions away from yesterday’s hopeful thoughts on a coronavirus (COVID-19) vaccine. With investor sentiments turning, CFD and spreadbetting firm IG Markets called London’s blue-chip benchmark down 41 points, making a price of 6,264 to 6,2672 with just over an hour to go until the open. China is in focus, instead of pharmaceutical pandemic progress, after it released a swathe of economic data. Later, the European Central Bank will take the spotlight. Stimulus and support will no doubt be key watch words. “It is worth noting that there has been an impressive rebound in certain economic indicators, such as services and manufacturing. In late June, the bond purchases made as a part of the PEPP, cooled to its lowest level since the stimulus package was expanded,” said David Madden, analyst at CMC Markets. “That could be a sign the ECB want to rein in the easing programme as the economy is recovering at a quicker rate than initially expected. “Even if the central bank is happy with the economic rebound, they won’t want to spook the markets.” On Wall Street, the Dow Jones finished Wednesday’s season up 227 points or 0.85% to 26,870. The S&P 500 rose by 0.91% to close at 3,226 and the Nasdaq climbed 0.59% to end the day at 10,550. 6.45 am: Early Markets: Asia / Australia Stocks in Asia Pacific dropped in afternoon trade as investors reacted to a slew of Chinese economic data with the Shanghai composite down 1.41% and Hong Kong’s Hang Seng index falling 1.17%.  In Japan, the Nikkei 225 slipped 0.77% in afternoon trade and South Korea’s Kospi fell 0.65% after Bank of Korea announced its decision to leave the base rate unchanged at 0.5%. In Australia, the S&P/ASX 200 traded 1% lower after the country saw a larger than expected increase in June unemployment and Victoria marked another daily record of new COVID-19 cases. READ OUR ASX REPORT FOR MORE INFORMATION Proactive Australia news: White Rock Minerals Ltd (ASX:WRM) has completed the second tranche of its A$7.35 million placement to institutional and sophisticated investors to be spent towards exploration program at its Red Mountain Project in Alaska. Alkane Resources Limited (ASX:ALK) (OTCMKTS:ALKEF) is set to upgrade gold resources at two deposits south of its Tomingley Gold Operations in NSW with results of up to 102 metres at 4.07 g/t and 62 metres at 4.01 g/t. Moho Resources Ltd (ASX:MOH) is eagerly awaiting results after completing phase one of its 2020 reverse circulation (RC) drilling program at the East Sampson Dam gold prospect in WA which is part of resource definition studies to infill and extend gold mineralisation. King River Resources Ltd (ASX:KRR) is higher on news that it will next month begin its 2020 gold exploration program at Mt Remarkable in Western Australia after delays caused by the COVID-19 pandemic restrictions. Latin Resources Ltd (ASX:LRS) (FRA:XL5) is buoyed by the very strong support demonstrated for its recent share purchase plan (SPP) which has closed heavily oversubscribed to the tune of 83% above the target. Blackstone Minerals Ltd (ASX:BSX) has begun exploration at Ta Cuong, its second massive sulphide vein (MSV) prospect at the Ta Khoa Nickel-Copper-Platinum Group Elements (PGE) Project in northern Vietnam. Eclipse Metals Ltd (ASX:EPM) will kick-off preliminary field exploration at Devil’s Elbow Uranium-Gold-Palladium Project next week with the Northern Territory set to re-open to visitors from July 17.