13th Dec 2024 06:52
(Alliance News) - Stocks in London are set to open lower on Friday ahead of UK economic data, and as investors digest Thursday's European Central Bank rate cut before next week's Federal Reserve decision.
IG says futures indicate the FTSE 100 to open 19.2 points lower, 0.2%, at 8,292.56 on Friday. The index of London large-caps closed up 10.14 points, 0.1%, at 8,311.76 on Thursday.
The pound was quoted at USD1.2658 early Friday, fading from USD1.2698 at the London equities close on Thursday. The euro stood at USD1.0460, down from USD1.0491. Against the yen, the dollar was trading at JPY152.97, rising from JPY152.22.
UK GDP data for October is released at 0700 GMT.
According to FXStreet cited consensus, the economy is expected to have grown 0.1% in October from September. It had contracted 0.1% in September from August, ending the third-quarter in a tepid fashion.
"While, in the grand scheme of things, we're talking about rounding errors here, I'd imagine that risks to consensus are tilted to the downside, given the huge degree of pre-Budget uncertainty present during the reference month," Pepperstone analyst Michael Brown commented.
In Tokyo on Friday, the Nikkei 225 was down 1.0%, while the S&P/ASX 200 in Sydney lost 0.4%. In China, the Shanghai Composite shed 1.4% and the Hang Seng Index plunged 1.7%.
China on Thursday vowed to boost domestic consumption next year, state media said, as leaders grappling with sluggish demand concluded a key economic policy meeting.
Top leaders at the annual Central Economic Work Conference, including Chinese President Xi Jinping, vowed to next year implement a "moderately loose" monetary policy, increase social financing and reduce interest rates "at the right time", according to state broadcaster CCTV.
ActivTrades analyst Anderson Alves commented: "Looking ahead, with limited macroeconomic data scheduled for today, traders are turning their attention to Federal Reserve and Bank of Japan decisions next week. Meanwhile, US-China policy developments remain critical macro drivers as Trump's inauguration day approaches."
In New York overnight, the Dow Jones Industrial Average and S&P 500 lost 0.5%, while the Nasdaq Composite shed 0.7%.
Brent oil was quoted at USD73.41 a barrel early Friday, rising from USD72.61 late Thursday. Gold was higher at USD2,686.77 an ounce from USD2,681.37.
In Friday's UK corporate calendar, Gore Street Energy Storage Fund releases half-year results.
By Eric Cunha, Alliance News news editor
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