5th Nov 2026 06:58
(Alliance News) - Stocks in London are set to open sharply higher on Thursday, extending gains from the previous session as investors welcomed the Democrats' victory in the US midterm elections, while awaiting a Bank of England interest rate decision.
IG says futures indicate the FTSE 100 to open 113.4 points higher, 1.1%, at 10,942.61 on Thursday. The index of London large-caps closed up 1.8% at 10,829.21 on Wednesday.
The Bank of England is widely expected to raise interest rates by 25 basis points to 4.00% from 3.75% when it announces its latest monetary policy decision at 1200 GMT.
Sterling was quoted at USD1.3491 early Thursday, higher than USD1.3464 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1981 from EUR1.1999 a day prior.
The euro traded at USD1.1260 early Thursday, higher than USD1.1222 late Wednesday. Against the yen, the dollar was quoted at JPY157.92, lower versus JPY158.45.
Brent oil was trading at USD93.95 a barrel early Thursday, lower than USD99.00 late Wednesday.
US President Donald Trump acknowledged that rising fuel prices caused by the Iran war had contributed to the Republican Party's defeat in the midterm elections, but defended his decision to launch military strikes against Tehran.
Speaking to reporters in Washington, Trump agreed with Vice President JD Vance's assessment that the war had played a role in the election defeat.
However, he insisted that he would make the same decision again, arguing that Iran must not be allowed to obtain a nuclear weapon.
Asked whether the war had been worth it, Trump answered yes.
The president argued that public dissatisfaction was about "the price, not the war", while acknowledging that the conflict had pushed gasoline prices higher "a little, short term".
Trump also maintained that Republicans would have won the elections had he been on the ballot, saying enthusiasm among his supporters at campaign rallies had failed to translate into votes for Republican candidates.
The comments followed a sweeping victory for Democrats in Tuesday's midterm elections, which saw the party take control of both the House of Representatives and the Senate for the remaining two years of Trump's presidency.
In the US on Wednesday, Wall Street rallied following the Democrats victory, with the Dow Jones Industrial Average up 3.0%, the S&P 500 up 1.6% and the Nasdaq Composite up 1.4%.
Meanwhile, Ukrainian President Volodymyr Zelensky is hoping the Democratic victory will translate into greater US support for Ukraine.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 1.8%, as data showed growth in Japan's private sector slowed slightly in October.
According to S&P Global, Japan's composite purchasing managers' index fell to 52.1 points in October from 52.3 in September, below the preliminary flash estimate of 52.3.
The reading remained above the 50-point threshold separating expansion from contraction, although services sector growth was weaker than initially estimated.
In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong surged 3.6%.
The S&P/ASX 200 in Sydney was up 2.6%, as official data showed Australia's trade surplus widened sharply in September amid a decline in imports.
According to the Australian Bureau of Statistics, the seasonally adjusted goods trade surplus increased to AUD2.83 billion, approximately USD1.99 billion, from AUD184 million in August.
Gold was quoted at USD4,127.91 an ounce early Thursday, higher than USD4,041.83 on Wednesday.
In Thursday's busy corporate calendar, Asos reports full-year results, while Autotrader Group, BT Group and National Grid publish half-year results. Croda International, Diageo and Next issue trading statements.
In the economic calendar on Thursday, Germany releases factory orders data, while construction purchasing managers' indices are due from Germany, the eurozone and the UK. The eurozone also publishes producer price inflation figures.
The Bank of England announces its latest interest rate decision at 1200 GMT, while the US releases weekly jobless claims and nonfarm productivity figures.
By Eva Castanedo, Alliance News senior economics reporter
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