Big hike in interest rates by the European Central Bank and Liz Truss’s energy bill support package are the major areas of focus for traders today.

A rise of 0.75% will take rates to their highest level since 2011 after the ECB ended eight years in negative territory 

Sterling yesterday hit a 37-year low of $1.14 but has steadied since as traders focus on the huge public finances impact of the prime minister’s plan 

The best session for US shares since mid-August means the FTSE 100 index and other European markets are poised to open higher today.

The tech-focused Nasdaq led the way by ending a run of seven negative sessions with a 2% improvement,

 while the S&P 500 index added 1.8% and Dow Jones Industrial Average rose 1.4%.

The Dax in Frankfurt is forecast to add 76 points to 12,992 but with the focus on whether the European Central Bank will raise interest rates

MIchael Hewson, said: “Whatever decision is made today, ECB President Christine Lagarde will need to ensure that her messaging is clear.”

A weaker US dollar overnight meant the pound recovered from the 37-year low of just above $1.14 yesterday

Deutsche Bank yesterday estimated the cost at £200 billion, which is half the sum spent during the pandemic and equivalent to 8% of GDP.