25th Sep 2024 06:57
(Alliance News) - Stocks in London are set to open lower on Wednesday, coming down from the high of China's economy-boosting measures and ahead of French consumer confidence and unemployment data.
Blue-chips in London rose on Tuesday, led by miners after Chinese authorities unveiled their latest package of monetary easing measures, although early strong gains were eroded after a surprise fall in US consumer confidence.
On Wednesday China's central bank said it would slash another key interest rate, cutting the medium-term lending facility – the interest for one-year loans to financial institutions – from 2.3% to 2.0% for the first time since July.
"Another day, another rate cut from China," remarked XTB analyst Kathleen Brooks. "This adds to the evidence that this is the PBOC's 'whatever it takes' moment, which could have a lasting effect on China’s financial markets and its economy. China's stocks are rising once more on Wednesday; however, European futures are taking a breather, and US equity futures are also pointing to a weaker open.
"However, we continue to think that European shares will welcome the boost to commodity prices and to the increased prospects of a rebound in China's economy."
IG says futures indicate the FTSE 100 to open down 48.2 points, 0.6%, at 8,234.56. The index of London large-caps closed down 0.3% at 8,282.76 on Tuesday.
Sterling was quoted at USD1.3407 early Wednesday, higher than USD1.3378 at the London equities close.
The euro traded at USD1.1193, higher than USD1.1147. Against the yen, the dollar was quoted at JPY143.20, down versus JPY143.67.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.6%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.4%. In China, the Shanghai Composite was up 1.0%, while the Hang Seng index in Hong Kong was up 1.4%. The S&P/ASX 200 in Sydney closed down 0.1%.
Gold was quoted at USD2,657.64 an ounce early Wednesday, higher than USD2,646.07.
Brent oil was trading at USD74.90 a barrel, higher than USD74.85 late Tuesday.
In Wednesday's corporate calendar, there are results from Da La Rue, DFS Furniture and Avingtrans.
In the economic calendar, has US housing permits, new home sales and crude oil stocks data, alongside comments from Federal Reserve Governor Adriana Kugler.
By Emma Curzon, Alliance News reporter
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