LONDON Sept 3 (Reuters) - Britain's top share index opened
flat on Monday in subdued trade with investors conscious that
European policymakers could disappoint on promises of economic
support later in the week.
By 0705 GMT, the FTSE 100 was up 1.38 points
percent, at 5,712.86, having shed 2.6 percent over the previous
eight trading days, although volumes are expected to remain
light with the U.S. stock market closed for the Labor Day
holiday.
Following Federal Reserve chairman Ben Bernanke's speech on
Friday, attention now returns to the European Central Bank
meeting this week amid expectations that Mario Draghi will
unveil some form of stimulus plan.
"As ever markets are probably expecting too much from
President Draghi and his colleagues; the retreat in risk assets
in recent days has begun to recognise the potential for
disappointment," Ian Williams, equity strategist at Peel Hunt,
said.
He said the challenge for Draghi will be to provide more
details of the new framework for bond purchases without
pre-judging subsequent political and legal developments, with a
cut in the refinance rate a possibility.
(Reporting by David Brett; editing by Simon Jessop)
