30th Sep 2026 06:53
(Alliance News) - Stocks in London are set to open higher on Wednesday, supported by strong trade in Asia, before eyes turn to US data in the afternoon.
In the UK, there is a gross domestic product reading in the morning, meanwhile.
IG says futures indicate the FTSE 100 to open 60.5 points higher, 0.6%, at 10,697.21 on Wednesday. The index of London large-caps closed down 48.17 points, 0.5%, at 10,636.71 on Tuesday.
The pound rose to USD1.3237 on Wednesday morning from USD1.3210 at the time of the London equities close on Tuesday. Against the euro, it climbed to EUR1.1670 from EUR1.1656. The euro fetched USD1.1338, up slightly from USD1.1335. Against the yen, the dollar bought JPY156.93, down from JPY157.59.
In Tokyo on Wednesday, the Nikkei 225 traded 1.9% higher. In China, the Shanghai Composite was up 0.5%. while the Hang Seng Index in Hong Kong edged up 0.1%. Sydney's S&P/ASX 200 was up 1.1%.
Beijing on Monday announced "a package of pragmatic and effective incremental policy measures" to support the economy.
The government will introduce measures aimed at stabilising the property market and promoting employment and income growth, state news agency Xinhua said.
In New York on Tuesday, the Dow Jones Industrial Average fell 0.3%, the S&P 500 lost 0.2% and the Nasdaq Composite declined 0.1%.
The yield on the US 10-year Treasury was quoted at 5.23% Wednesday morning, narrowing from 5.29%. The yield on the US 30-year Treasury was quoted at 5.56%, easing from 5.60%.
Wednesday's global economic calendar has UK and US GDP figures at 0700 BST and 1330 BST, respectively, and the ADP private payrolls report at 1315. The US personal consumption expenditures inflationary gauge is also out at 1330.
Swissquote analyst Ipek Ozkardeskaya commented: "There are a few combinations that could result in different outcomes in terms of market pricing.
"A combination of robust growth and a recovery in the jobs market would allow the Fed to hike rates to fight rising inflationary pressures, provided that price pressures look concerning. That would keep upward pressure on short-term yields and the US dollar, while weighing on equities. If growth and jobs data fall below expectations while inflation remains elevated, we could see the US 2–10-year spread narrow again. That could continue to threaten risk appetite, while eventually reversing part of the dollar's recent strength."
The analyst continued: "A combination of soft GDP, soft jobs and softer-than-expected inflation could soften hawkish Fed expectations, pull yields lower across the curve, weaken the US dollar and give some support to equities through lower yields. Strong GDP and jobs data and a softer-than-expected PCE reading would be the best possible scenario – with a lower probability, however. It could ease pressure on yields and support equities. But again, it is the furthest from our base-case scenario, as rising inflation is the major headache and needs to be addressed."
A barrel of Brent fell to USD103.43 early Wednesday from USD104.44 late Tuesday afternoon. Gold rose to USD4,176.71 an ounce from USD4,157.46.
Wednesday's local corporate calendar has a trading update from bakery chain Greggs and half-year results from retirement products seller, Saga.
By Eric Cunha, Alliance News news editor
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