21st Oct 2024 06:57
(Alliance News) - Stocks in London are to open a touch higher at the start of the week, while equities in China got a boost after interest rate cuts there.
IG says futures indicate the FTSE 100 to open 6.9 points higher, 0.1%, at 8,365.15 on Monday. The index of London large-caps closed down 26.88 points, or 0.3%, at 8,358.25 on Friday.
The pound was quoted at USD1.3043 early Monday, up slightly from USD1.3040 at the time of the London equities close on Friday. The euro stood at USD1.0861, up from USD1.0858. Against the yen, the dollar was trading at JPY149.32, down from JPY149.54.
China's central bank on Monday said it had cut two key interest rates to historic lows, in the latest move by Beijing to boost sluggish spending and kickstart the world's second-largest economy.
The cuts come just days after the country posted its slowest quarterly growth in a year and a half, underlining the deep economic woes the country faces.
Leaders are targeting annual growth of 5% this year, but that goal is being challenged by weak consumption and a prolonged and debilitating debt crisis in the colossal property sector.
The one-year loan prime rate, which constitutes the benchmark for the most advantageous rates lenders can offer to businesses and households, was cut from 3.35% to 3.1.
The five-year LPR, the benchmark for mortgage loans, was cut from 3.85 to 3.6.
Both rates were last reduced in July and are sitting at all-time lows.
The Shanghai Composite was up 0.5% on Monday. However, the Hang Seng in Hong Kong lost 1.3%. In Tokyo, the Nikkei 225 added 0.2%. The S&P/ASX 200 in Sydney rose 0.7%.
In New York on Friday, the Dow Jones Industrial Average edges up 0.1%, the S&P 500 added 0.4% and the Nasdaq Composite climbed 0.6%.
Netflix's well-received earnings boosted the Nasdaq. The streaming service jumped 11% on Friday.
Pepperstone analyst Michael Brown commented: "Earnings season also steps up another gear this week, in what will be the second busiest of reporting season. Today, though, only SAP are of note."
In the UK corporate calendar, Tristel, an infection prevention products manufacturer, releases annual results.
Brent oil was quoted at USD73.28 a barrel on Monday morning UK time, from USD72.45 at the time of the London equities close on Friday. Gold was quoted at USD2,726.71 an ounce, up from USD2,717.31.
By Eric Cunha, Alliance News news editor
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