5th Feb 2026 06:55
(Alliance News) - Stocks in London are set to open lower on Thursday, after the FTSE 100 closed at a new record high on Wednesday, ahead of interest rate decisions in the UK and Europe.
IG says futures indicate the FTSE 100 to open down 14.8 points, 0.1%, at 10,387.54 on Thursday. The index of London large-caps closed up 87.75 points, 0.9%, at 10,402.34, a new record close, on Wednesday.
Sterling was at USD1.3615 on Thursday morning, down from USD1.3656 at the London equities close on Wednesday. The euro was lower at USD1.1790 from USD1.1798. Against the yen, the dollar was higher at JPY156.88 versus JPY156.69.
Interest rate decisions in the UK and Europe will be in focus today.
Pepperstone analyst Michael Brown said: "The [Bank of England] will hold Bank Rate steady at 3.75%, in what I expect to be a 6-3 vote, while maintaining guidance alluding to further rate reductions in the near future, providing that the inflationary outlook remains favourable. On that note, the Bank's updated economic forecasts should pencil in a return to the 2% price target this spring, before remaining at that level for the remainder of the horizon, in turn laying the groundwork for a cut as soon as the next meeting, in March. An increasing margin of labour market slack further supports this view, particularly with unemployment projections likely to be nudged higher, to a peak of around 5.3% in Q2 26."
Brown added: "As for the ECB, Lagarde & Co are also set to stand pat, maintaining the deposit rate at 2.00%, while reiterating that they will continue to take a 'data-dependent' and 'meeting-by-meeting' approach to future policy decisions. For all intents and purposes, though, the easing cycle is now over, especially with Lagarde likely to reiterate that that policy is in a 'good place' at the post-meeting press conference."
Meanwhile, US President Donald Trump said in an interview that his choice for the next Federal Reserve chair, Kevin Warsh, understands the need for lower interest rates.
Trump told NBC News that Warsh "wants to" lower rates anyway, adding that the former central bank governor would not have got the job if he said that he sought to raise rates instead.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.5%, the S&P 500 down 0.5% and the Nasdaq Composite 1.5% lower.
In Asia on Thursday, the Nikkei 225 in Tokyo was down 0.9%. In China, the Shanghai Composite was 0.6% lower, while the Hang Seng Index in Hong Kong fell 0.2%. The S&P/ASX 200 in Sydney was 0.4% lower.
Overnight, Alphabet said its capital expenditure would nearly double in 2026, as it grapples to meet soaring demand.
The Google-parent said fourth quarter net income rose 30% to USD34.46 billion from USD26.54 billion the year prior. Diluted earnings per share increased to USD2.82 from USD2.15, beating FactSet consensus of USD2.65.
Revenue increased 18% to USD113.83 billion from USD96.47 billion the year prior, ahead of the USD111.97 billion consensus.
Chief Executive Sundar Pichai said it was a "tremendous quarter" for Alphabet. To meet customer demand and capitalise on the growing opportunities ahead, Alphabet said 2026 capex will be in the range of USD175 to USD185 billion compared to just over USD90 billion in 2025.
Gold was higher at USD4,924.40 an ounce early on Thursday from USD4,916.04 late Wednesday.
Brent oil was trading higher at USD68.13 a barrel on Thursday morning from USD67.41 on Wednesday.
Thursday's UK corporate calendar has third quarter results from telco BT, while industry peer Vodafone issues a trading statement. Miner Anglo American also updates on trading, while oil major Shell releases full-year results.
Thursday's global economic calendar has interest rate decisions in the UK and Europe, eurozone retail sales figures and a slew of construction PMIs.
By Michael Hennessey, Alliance News reporter
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