20th Nov 2024 06:54
(Alliance News) - Stocks in London are set to open a touch higher on Wednesday, clawing back Tuesday's loss, with focus in the morning on a UK inflation reading.
IG says futures indicate the FTSE 100 to open 11.4 points higher, 0.1%, at 8,110.42 on Wednesday. The index of London large-caps closed down 10.30 points, 0.1%, at 8,099.02 on Tuesday.
According to FXStreet, the UK consumer price index reading on Wednesday is expected to show the pace of annual inflation accelerated to 2.2% last month, back above the Bank of England target, from 1.7% in September.
The pound rose to USD1.2692 early Wednesday in London, from USD1.2676 at the time of the London equities close on Tuesday.
"The core rate is likely to be more interesting, especially the prices of services, which remain stubbornly high. They fell surprisingly sharply last month, although base effects also played a role. This time, the fall height is much smaller, while wage growth has recently been stronger than expected. There is therefore much to suggest that the potential for downside surprises is somewhat more limited," Commerzbank analyst Michael Pfister commented.
"Even if there is a downside surprise, the Bank of England is likely to look through it. At the beginning of November, it sharply lowered its inflation forecast for the fourth quarter, but clearly focused on next year, when the new budget is expected to add to inflationary pressures. As a result, the figures would have to surprise to the downside significantly for a December rate cut to be on the table again."
Versus the dollar, the euro edged up to USD1.0594 early Wednesday, from USD1.0590 late Tuesday afternoon. Against the yen, the dollar rose to JPY155.35 from JPY154.21.
Brent rose to USD73.06 a barrel from USD72.93. Gold traded at USD2,631.11 an ounce, up from USD2,628.26.
In New York, the Dow Jones Industrial Average closed down 0.3% on Tuesday. The S&P 500 added 0.4%, however, and the Nasdaq Composite surged 1.0%.
In China on Wednesday, the Shanghai Composite added 0.6%. The Hang Seng Index in Hong Kong was up 0.3%.
The People's Bank of China left the one-year loan prime rate at 3.10% on Wednesday, as expected. The five-year LPR was maintained at 3.60%.
In Tokyo, the Nikkei 225 was down 0.3%. The S&P/ASX 200 lost 0.6%.
The global economic calendar has the inflation reading from the UK and a German producer price index at 0700 GMT.
The local corporate calendar has half-year results from water utility Severn Trent and industrial chains and power-transmission products supplier Renold.
In New York, earnings from Nvidia will be in focus after the closing bell on Wednesday.
By Eric Cunha, Alliance News news editor
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