11th Dec 2024 06:48
(Alliance News) - European blue-chips are to open lower on Wednesday, ahead of a US consumer price index reading in the afternoon.
IG says futures indicate the FTSE 100 to open 28.4 points lower, 0.3%, at 8,251.96 on Wednesday. The index of London large-caps closed down 71.72 points, 0.9%, at 8,280.36 on Tuesday.
The CAC 40 in Paris and the DAX 40 in Frankfurt are each called down 0.1%.
The pound rose to USD1.2767 early Wednesday in London, up from USD1.2748 at the time of the London equities close on Tuesday. The euro rose to USD1.0527 from USD1.0507. Versus the yen, the dollar faded to JPY151.64 from JPY152.02.
Brent oil was quoted at USD72.62 a barrel, largely unmoved from USD72.65. Gold rose to USD2,695.01 an ounce from USD2,690.00.
US consumer price inflation is expected to have crept up to an annual rate of 2.7% in November, according to FXStreet cited consensus, from 2.6% in October.
"However, it seems highly unlikely that the print will materially alter the near-term outlook for FOMC policy. A 25bp cut next Wednesday seems locked-in, certainly after the higher than expected 4.2% unemployment rate seen in November, with the labour market, not price pressures, being the primary determinant of policy shifts at this juncture," Pepperstone analyst Michael Brown commented.
The US data is released at 1330 GMT. Also in focus will be a Bank of Canada interest rate decision at 1445 GMT.
In New York on Tuesday, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 and Nasdaq Composite each lost 0.3%.
In Tokyo, the Nikkei 225 was marginally lower on Wednesday. In Sydney, the S&P/ASX 200 fell 0.5%. In China, the Shanghai Composite was up 0.3%, while the Hang Seng in Hong Kong lost 0.5%.
Wednesday's UK corporate calendar has a trading statement from tobacco seller British American Tobacco.
By Eric Cunha, Alliance News news editor
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