23rd Oct 2024 06:53
(Alliance News) - Stocks in London are set to open flat on Wednesday, with central bankers in focus in what is an otherwise quiet day on the economic calendar.
Bank of England Governor Andrew Bailey and European Central Bank President Christine Lagarde have speak on Wednesday. The Bank of Canada, meanwhile, announces an interest rate decision at 1445 BST.
IG says futures indicate the FTSE 100 to open just 1.8 points higher at 8,308.34 on Wednesday. The index of London large-caps closed down 11.70 points, or 0.1%, at 8,306.54.
In New York on Tuesday, the Dow Jones Industrial Average and S&P 500 ended marginally lower. The Nasdaq Composite added 0.2%.
In Tokyo on Wednesday, the Nikkei 225 lost 0.7%, but in China, the Shanghai Composite was 1.1% higher. In Hong Kong, the Hang Seng Index was up 1.9%. Sydney's S&P/ASX 200 added 0.1%.
"In China, the big question is whether the stock market rally has any real staying power. A state-backed think tank has pitched the idea of issuing a hefty 2 trillion yuan in special government bonds to create a market stabilization fund—a move designed to inject confidence into a market teetering on the edge. Yet, despite the bold proposal, there's a sense that Beijing remains in reactionary mode, playing catch-up rather than getting ahead of the game. The whispers from policymakers suggest they're throwing everything at the wall to see what sticks, but it's unclear if these measures will provide more than a temporary reprieve. Global forces, particularly the dollar's dominance, continue to heap pressure on Asian currencies and asset prices, creating an uphill battle," SPI Asset Management analyst Stephen Innes commented.
The dollar was mixed on Wednesday morning, after trimmed US interest rate cut boosted the greenback on Tuesday. The pound rose to USD1.2991 early Wednesday, from USD1.2973 at the time of the London equities close on Tuesday. Versus the dollar, the euro ebbed to USD1.0804 from USD1.0808. Against the yen, the greenback jumped to JPY152.09 from JPY151.06.
Gold rose to USD2,752.21 an ounce early Wednesday, around a record high, up from USD2,739.35 late Tuesday afternoon. A barrel of Brent was largely unmoved at USD75.89 from USD75.86.
In the UK corporate calendar, lender Lloyds Banking Group releases quarterly results. Housebuilder Barratt Redrow and advertising WPP announce trading statements.
In Frankfurt, Deutsche Bank announced a third-quarter earnings improvement, and the company said it is seeking approval to undertake a share buyback.
Net profit in the third-quarter of 2024 rose 39% on-year to EUR1.67 billion from EUR1.20 billion. Revenue was 5.2% higher at EUR7.50 billion from EUR7.13 billion a year prior. Its investment bank shone, with revenue there surging 11%.
"In these three months, we made important progress in putting legacy litigation matters behind us, while also producing a record third-quarter profit in our operating business," said Christian Sewing, Chief Executive Officer. "This reflects our strong franchise, positive momentum across our businesses, and sustained cost discipline. Our Global Hausbank is ideally positioned to help clients navigate the uncertainties in today's environment, and this reinforces our confidence that we will continue on our path of profitable growth and exceed our original goals for capital distributions to shareholders. We have now sought authorization for further share repurchases."
By Eric Cunha, Alliance News news editor
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