Market Report: Markets remain cautious ahead of US inflation figures

• FTSE 100 expected to open flat.
• UK retail sales for November disappoint – +0.2% vs consensus of +0.5%
• US Q3 GDP revised higher, no bounce for Wall Street
• PCE index in sight today – consensus 2.9%
• Congressmen lock horns with Elon Musk as US government faces funding crisis.
• Brent Crude falls below $73 per barrel.

Derren Nathan, head of equity research, Hargreaves Lansdown:

“The FTSE 100 is set to open flat as global markets struggle to find direction in the wake of Wednesday’s Fed triggered reset. Investors are unlikely to find any comfort in UK retail sales figures which grew 0.2% in November after a 0.7% dip the previous month. However, analysts had been hoping for a stronger recovery, with the numbers falling short of the 0.5% consensus forecast. Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers. With Black Friday falling outside the reporting period, retailers will be banking more than ever on a strong final month of the year.

Signs of an early revival on Wall Street petered out yesterday despite strong third-quarter GDP figures. The American economy grew by 3.1% in the third quarter. An upward revision