29th Jan 2026 06:59
(Alliance News) - Stocks in London are set to open higher on Thursday, following the US Federal Reserve's latest policy decision and a fresh surge in gold prices.
IG says futures indicate the FTSE 100 to open 24.6 points higher, 0.2% at 10,179.03 on Thursday. The index of London large-caps closed down 0.5% at 10,154.43 on Wednesday.
The Federal Reserve on Wednesday left interest rates unchanged for the first time since July, striking a more positive tone on the US economy.
The widely expected decision at the US central bank's first meeting of 2026 leaves the federal funds rate target range at 3.50% to 3.75%.
Ten members of the 12-strong Federal Open Market Committee voted to hold rates steady, with Stephen Miran and Christopher Waller arguing for a quarter-point cut.
It marks the Fed's first pause since July and follows 25 basis point cuts in September, October and December.
In its statement, the FOMC said available indicators suggest economic activity has been expanding at a solid pace. Job gains have remained low, while the unemployment rate has shown some signs of stabilisation. Inflation, however, remains somewhat elevated. In December, the committee had said growth was moderate and noted that the unemployment rate had edged higher.
Gold climbed to a fresh record above USD5,500 an ounce after the Fed opted to leave rates unchanged. Gold was quoted at USD5,562.10 an ounce early Thursday, higher than USD5,282.35 at the London equities close on Wednesday.
Sterling was quoted at USD1.3838 early Thursday, higher than USD1.3778 at the London equities close on Wednesday.
The euro traded at USD1.1986 early Thursday, higher than USD1.1935 late Wednesday. Against the yen, the dollar was quoted at JPY153.08, down versus JPY153.63.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average marginally higher, the S&P 500 marginally lower and the Nasdaq Composite up 0.2%.
After the market close, attention turned to a busy slate of Big Tech earnings. Tesla shares rose 2.2% in after-hours trading after the company reported better-than-expected fourth-quarter results, despite a sharp fall in net income.
Meta shares jumped 6.7% in late trading after it also beat fourth-quarter revenue expectations, supported by growth in advertising impressions and prices per ad, while its outlook surprised on the upside. "We had strong business performance in 2025," said Mark Zuckerberg, Meta founder & chief executive "I'm looking forward to advancing personal superintelligence for people around the world in 2026."
The third major tech name to report fared less well, with shares sliding 6.1% after hours as, despite beating profit expectations, revenue in its More Personal Computing division fell short.
Canada also delivered a central bank decision.
Bank of Canada Governor Tiff Macklem said the era of rules-based trade with the US is "over" as the bank held its key interest rate at 2.25%, citing the "unpredictable" nature of US trade policy. Macklem reiterated that forecasting the Canadian economy has become increasingly difficult amid tariffs imposed or threatened by US President Donald Trump.
Back to UK news, Prime Minister Keir Starmer met Chinese President Xi Jinping in Beijing, telling him he wants a "more sophisticated" relationship with China. Xi said China is ready to develop a long-term and consistent strategic partnership with the UK that would benefit both countries.
In Asia on Thursday, the Nikkei 225 index in Tokyo was marginally higher, even as Japan's consumer confidence index edged up to 37.9 points in January from 37.2 in December, but came in below the FXStreet-cited consensus forecast of 38.
In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 0.2%.
The S&P/ASX 200 in Sydney closed down 0.1%. Australian data showed export and import prices rose in the final quarter of 2025, driven by higher non-monetary gold prices.
According to the Australian Bureau of Statistics, the export price index climbed 3.2% quarter-on-quarter in the fourth quarter from a 0.9% fall in the third.
The import price index rose 0.9% from a 0.4% decline, beating the FXStreet-cited forecast for a 0.2% fall. Over the year, export prices were down 0.3%, while import prices were 3.0% higher.
Brent oil was trading at USD68.26 a barrel early Thursday, higher than USD68.01 late Wednesday.
In Thursday's corporate calendar, it is a busy day for updates, including trading statements from Antofagasta, easyJet, Glencore and St James's Place, full-year results from Lloyds Banking Group and International Paper, and third-quarter results from Wizz Air.
In the economic calendar on Thursday, data due include Switzerland's trade balance, the eurozone economic sentiment index, Ireland's gross domestic product, Canada's trade balance, US trade balance and weekly jobless claims, as well as US factory orders and wholesale inventories.
By Eva Castanedo, Alliance News reporter
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