16th Jul 2026 06:51
(Alliance News) - Stocks in London are set to open lower on Thursday, with investors awaiting a batch of UK economic data after the Federal Reserve struck a cautious tone on inflation and the US launched fresh strikes against Iran.
IG says futures indicate the FTSE 100 to open 31.5 points lower, 0.3%, at 10,484.42 on Thursday. The index of London large-caps closed down 0.1% at 10,515.92 on Wednesday.
Attention early Thursday will turn to the UK, where gross domestic product figures are due at 0700 BST. GDP is expected to have risen 0.1% month-on-month in May after falling 0.1% in April.
At the same time, the UK will release trade balance and industrial production data. The goods trade deficit is forecast at GBP23.6 billion for May, while industrial output is expected to have slipped 0.1% month-on-month after being flat in April.
Sterling was quoted at USD1.3537 early Thursday, higher than USD1.3486 at the London equities close on Wednesday. Against the euro, sterling rose to EUR1.1800 from EUR1.1791 a day prior.
The euro traded at USD1.1447 early Thursday, higher than USD1.1437 late Wednesday. Against the yen, the dollar was quoted at JPY162.12 versus JPY162.13.
US economic activity expanded at a modest pace since the start of June, according to the Federal Reserve's Beige Book.
The closely watched report showed 11 of the Fed's 12 districts recorded slight to moderate growth in late May and June, while one district reported no change. Employment increased overall, wage growth remained modest to moderate, and prices continued to rise at a moderate pace.
Meanwhile, Federal Reserve Governor Lisa Cook signalled that she was prepared to support tighter monetary policy if inflation fails to ease.
"If we do not see signs of disinflation soon, I am prepared to act," Cook said in prepared remarks in Washington. She indicated inflation currently posed a greater concern than the labour market, suggesting she could back a rate increase if price pressures remain persistent.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.6%.
In corporate news, SpaceX shares briefly fell below their initial public offering price on Wednesday, touching a record low of USD132.75 before ending the session at USD135.27.
The stock debuted at USD150 on June 12 and climbed to an all-time high of USD225.64 just four days later, but has been under pressure ever since.
The US launched another wave of strikes against Iran aimed at limiting its ability to threaten shipping through the Strait of Hormuz.
US Central Command said the strikes began at 1900 GMT and targeted Iranian military capabilities used to threaten vessels transiting the strategic waterway. President Donald Trump warned the attacks could be widened unless Tehran returned to negotiations.
European Union countries agreed to maintain the current price cap on Russian oil for another week to allow more time to negotiate a broader package of sanctions against Moscow.
Diplomats said the last-minute compromise came just hours before a deadline that would otherwise have lifted the cap above its current USD44 level.
Back in the UK, incoming Prime Minister Andy Burnham declined to rule out introducing a wealth tax, suggesting the government "might be having to ask for a little more" to restore the public finances.
Burnham said he wanted time to assess the state of the public finances before committing to policy changes, but argued the UK needed a "greater sense of fairness". He also said he would be willing to disagree with Trump while remaining respectful of the US presidency.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 2.8%. In China, the Shanghai Composite fell 1.2%, while the Hang Seng index in Hong Kong rose 2.1%.
The S&P/ASX 200 in Sydney was marginally lower, despite data showing Australian consumer inflation expectations eased further in July.
According to the Melbourne Institute, expected inflation fell to 4.7% in July from 5.5% in June.
Gold was quoted at USD4,029.10 an ounce early Thursday, lower than USD4,048.39 on Wednesday.
In Thursday's corporate calendar, Crest Nicholson Holdings, Ocado Group and SSE report half-year results, while Northern Bear posts full-year numbers. DCC, Dunelm Group, Experian and Wise Group are among those issuing trading statements.
In the economic calendar on Thursday, the UK releases GDP, trade balance, industrial production and manufacturing production data.
The eurozone publishes trade balance figures, while the US reports weekly jobless claims, retail sales and pending home sales.
By Eva Castanedo, Alliance News senior economics reporter
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