18th Dec 2025 06:54
(Alliance News) - Stocks in London are set to tread water on Thursday, ahead of a flurry of central bank decisions and US inflation data.
IG says futures indicate the FTSE 100 to open just 2.8 points lower at 9,771.52 on Thursday. The index of London large-caps closed up 89.53 points, 0.9%, at 9,774.32 on Wednesday. It had earlier traded as high as 9,853.13.
The pound rose to USD1.3367 early Thursday, from USD1.3359 at the time of the London equities close on Wednesday. The euro faded to USD1.1744 from USD1.1749. Against the yen, the dollar rose to JPY155.84 from JPY155.55.
Sterling recovered slightly but remains below the USD1.34 mark after a softer-than-expected UK inflation reading.
Consumer prices rose 3.2% year-on-year in November, slowing from 3.6% in October, and well below FXStreet-cited consensus of 3.5%, according to data published by the Office for National Statistics on Wednesday.
The yield on the 10-year US Treasury narrowed to 4.15% from 4.17%. The 30-year yield eased to slightly to 4.82% from 4.83%.
Thursday's economic calendar has interest rate decisions in the UK, the eurozone, Norway and Sweden, plus US inflation data.
In New York on Wednesday, the Dow Jones Industrial Average ended down 0.5%, the S&P 500 dropped 1.2% and the Nasdaq Composite slumped 1.8%.
In Tokyo on Thursday, the Nikkei 225 was down 0.9%. In China, the Shanghai Composite was up 0.3%, though the Hang Seng Index in Hong Kong was down 0.3%. Sydney's S&P/ASX 200 ended slightly higher.
"Sentiment softened ahead of today's US CPI figures, and five G10 policy decisions in the next 24 hours," Pepperstone analyst Michael Brown commented.
"In brief, this morning should see both the Riksbank and Norges Bank stand pat, holding their policy rates steady at 1.75% and 4.00% respectively, with the former's easing cycle at an end, and the latter not pencilling in any further cuts until the middle of next year. Later on, at lunchtime, the Bank of England are set to deliver a 25bp cut, lowering bank rate to 3.75%, in light of a continued weakening in labour market conditions, and amid faster than expected disinflationary progress. Such a decision, though, shan't be a unanimous one, with the MPC instead likely to vote 6-3 in favour of such a cut, with those three dissenters preferring to hold bank rate steady."
The analyst continued: "Following that, the ECB will likely stand pat, maintaining the deposit rate at 2.00%, with President Lagarde again likely to reiterate that policymakers are in a 'good place', with the easing cycle almost certainly at an end."
On Friday, the Bank of Japan is expected to hike rates by 25 basis points.
A barrel of Brent rose to USD60.13 on Thursday morning, from USD59.91 at the time of the London equities close on Wednesday. Gold rose to USD4,333.41 an ounce from USD4,326.25.
US President Donald Trump promised Americans an economic boom in an address to the nation on Wednesday, while blaming Democratic predecessor Joe Biden for high prices that have hit the Republican's popularity.
"Good evening America. 11 months ago I inherited a mess, and I'm fixing it," the 79-year-old said in his live speech from the White House at the end of his first year back in power.
In a surprise announcement, Trump said that 1.45 million US military service members would each receive "warrior dividend" bonus checks for USD1,776 before Christmas, paid for with revenues raised from tariffs.
Trump then promised that "we are poised for an economic boom the likes of which the world has never seen" in 2026, when the US will co-host the FIFA World Cup, with Canada and Mexico.
Eyes will be on BP shares on Thursday. It said late Wednesday Chief Executive Murray Auchincloss will step down on Thursday and be replaced by Woodside Energy Group boss Meg O'Neill.
The London-based oil major said Carol Howle, current executive vice president, supply, trading & shipping of BP, will serve as interim CEO until O'Neil joins on April 1, 2026.
Auchincloss will serve in an advisory role until December 2026 to ensure a smooth transition.
O'Neill has been CEO of Woodside Energy since 2021, where she oversaw the acquisition of BHP Petroleum International.
Before joining Woodside Energy in 2018, she spent 23 years at Exxon Mobil Corp in technical, operational and leadership positions around the world.
Woodside shares were down 2.7% in Sydney.
Thursday's UK corporate calendar has half-year results from electricals retailer Currys.
By Eric Cunha, Alliance News news editor
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