30th Oct 2024 06:55
(Alliance News) - Stocks in London are set to open lower on Wednesday, ahead of the UK government budget announcement and a slew of US data in the afternoon.
The economic calendar for Wednesday has the UK budget at 1230 GMT, US retail sales and GDP data also at 1230 GMT and ADP private payrolls figures at 1215 GMT.
"Chancellor Reeves is set to redefine how the UK measures debt so that it can borrow more to 'invest'," Rabobank analysts commented.
IG says futures indicate the FTSE 100 to open 26.0 points lower, 0.3%, at 8,193.61 on Wednesday. The index of London large-caps closed down 66.01 points, 0.8%, at 8,219.61 on Tuesday.
The pound was quoted at USD1.3009 early Wednesday, rising from USD1.2991 at the London equities close on Tuesday. The euro stood at USD1.0825, climbing from USD1.0795. Against the yen, the dollar was trading at JPY153.26, down from JPY153.56.
The Nikkei 225 index in Tokyo was rose 1.0% on Wednesday. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong shed 1.5%. The S&P/ASX 200 in Sydney closed ended down 0.8%.
Asian stocks were mixed despite a report that China is considering approving the issue of CNY10 trillion, around USD1.4 trillion, in extra debt in the next few years to fire up the economy.
SPI Asset Management analyst Stephen Innes commented: "Asian markets are mostly down Wednesday, with investors on edge and wary of making big moves in local markets as the U.S. presidential election looms large with pre-election de-risking taking hold. Even China's rumoured CNY10 trillion stimulus plan is getting a lukewarm reception as investors weigh its potential impact—or lack thereof—on the broader economy. According to reports, this package aims to tackle local government debt issues rather than pump funds directly into economic growth drivers, with around 6 trillion yuan going toward local government debt relief and 4 trillion yuan earmarked for special bonds targeting property and land purchases."
In New York on Tuesday, the Dow Jones Industrial Average fell 0.4%, the S&P 500 added 0.2%, while the Nasdaq Composite rose 0.8%.
Alphabet rose 5.9% after hours in New York. It hailed extraordinary momentum across the business as sales and earnings topped market forecasts.
The Mountain View, California-based technology conglomerate reported net income of USD26.30 billion in the three months to September 30, rising 34% from USD19.69 billion a year prior. Earnings per share jumped to USD2.12 from USD1.85.
Revenue came to USD88.27 billion, up 15% from USD76.69 billion.
The figures beat a CNBC-cited consensus of USD86.30 billion for revenue and USD1.85 for EPS.
Brent oil was quoted at USD71.25 a barrel early Wednesday, rising from USD71.11 late Tuesday afternoon. Gold was quoted at USD2,787.71 an ounce, up from USD2,765.34.
In Wednesday's UK corporate calendar, pharmaceuticals firm GSK reports third quarter results.
Already out, Standard Chartered said it delivered a strong performance in the third quarter.
Pretax profit surged to USD1.72 billion from USD633 million a year prior. Operating income rose 9.4% to USD4.95 billion from USD4.52 billion.
The lender upped guidance. It now predicts operating income growth of 10% this year at constant currency. It had previously predicted a rise of 7%.
"We are increasing both our 2026 RoTE target from 12% to approaching 13%, and our shareholder distribution target from at least USD5 billion to at least USD8 billion from 2024 to 2026," Chief Executive Bill Winters said.
By Eric Cunha, Alliance News news editor
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