27th Aug 2026 06:18
(Alliance News) - Stocks in London are set to open lower on Thursday, with eyes now turning to Jackson Hole and Federal Reserve Chair Kevin Warsh, after a robust batch of US inflation data on Wednesday.
Nvidia impressed, meanwhile, sending its shares higher in extended trade and lifting chip stocks in Asia.
IG says futures indicate the FTSE 100 to open 40.4 points lower, 0.4%, at 10,837.72 on Thursday. The index of London large-caps closed down 8.04 points, 0.1%, at 10,878.12 on Wednesday.
The personal consumption expenditures price gauge rose 3.7% on-year in July, in line with June's expansion, but topping the FXStreet cited forecast of 3.6%.
The core PCE index advanced 3.3% on-year in July, in line with June and the consensus. The core reading is the Federal Reserve's preferred inflation gauge.
Quintex Intel analyst Stephen Innes commented: "July PCE inflation held at 3.7%, core inflation remained at 3.3%, and the two-year Treasury yield has climbed toward 4.22%. Markets are now pricing another Fed hike by December."
The pound traded at USD1.3588 early Thursday, barely budging from USD1.3590 at the time of the London equities close on Wednesday. Against the euro, it faded to EUR1.1654 from EUR1.1664.
The euro rose to USD1.1655 from USD1.1651. Against the yen, the dollar was steady at JPY159.35 from JPY159.37.
The yield on the US 10-year Treasury was steady at 4.66%, where it stood at the time of the London equities close on Wednesday. The yield on the US 30-year Treasury was unchanged at 5.18%.
The Dow Jones Industrial Average closed down 0.2% on Wednesday in New York. The S&P 500 fell slightly. The Nasdaq Composite ended down 0.1%.
Nvidia gave a buoyant sales outlook and forecast continued soaring AI demand, although it cautioned soaring memory costs will depress near-term margins.
"We've got a huge year coming up next year and it's going to be pretty extraordinary," Chief Executive Jensen Huang told analysts on the earnings call following second quarter results.
Nvidia expects to grow revenue by 70% in financial 2028, which runs to January of that year, according to Chief Financial Officer Colette Kress, in what she termed was a "supply constrained outlook."
Analysts have currently pencilled in 45% growth.
Nvidia shares rose 4.7% after hours.
XTB analyst Kathleen Brooks commented: "In the last 4 quarters, Nvidia's share price has fallen after the last four earnings reports. However, if the pre-market rally continues into Thursday, this would suggest that the cycle has been broken, and we could embark on a new bullish phase for Nvidia's share price."
In Tokyo, the Nikkei 225 was down 0.1%. But the Shanghai Composite in China was up 0.6%. The Hang Seng Index in Hong Kong was down 0.6%, and Sydney's S&P/ASX 200 lost 1.0%.
A barrel of Brent fell to USD86.48 early Thursday from USD88.09 late Wednesday afternoon. Gold rose to USD4,620.09 an ounce from USD4,596.56.
Thursday's global economic calendar has US initial jobless claims and wholesale inventories data plus the Kansas City Fed manufacturing activity report.
Thursday's UK corporate calendar has half year results from packaging and labelling supplier Macfarlane Group and Park Plaza and art'otel hotel operator PPHE Hotel Group.
By Eric Cunha, Alliance News news editor
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