8th Oct 2026 06:57
(Alliance News) - Stocks in London are set to open flat on Thursday, after a hawkish set of Federal Reserve meeting minutes and a lofty oil price, which hit equity market appetite in New York and Asia.
IG says futures indicate the FTSE 100 to open just 0.3 points lower, essentially flat, at 10,458.20 on Thursday. The index of London large-caps closed 83.19 points, 0.8%, at 10,458.50 on Wednesday.
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.7%, the S&P 500 down 0.2% and the Nasdaq Composite down 0.2%.
In Tokyo on Thursday, the Nikkei 225 was down 0.7%. In China, the Shanghai Composite was also down 0.7%, as traders returned to desks following the Golden Week break. In Hong Kong, the Hang Seng Index was similarly 0.7% lower. Sydney's S&P/ASX 200 ended 0.8% lower.
Federal Reserve officials expect to raise interest rates once more this year as they look to bring inflation back to 2% target, minutes published on Wednesday showed.
"With regard to the outlook for monetary policy beyond the current meeting, most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end," the minutes of the September 15-16 Federal Open Market Committee meeting said.
But officials were more coy as to when exactly the next rate rise will be.
"Participants emphasized, however, that they approached each meeting with an open mind and decisions at future meetings would depend on incoming information and its implications for the outlook and the balance of risks," the minutes stated.
The Federal Reserve has two meetings left this year with interest rate decisions on October 28 and December 9.
At its September meeting, the US central bank voted 12-0 to raise rates by 25 basis points, taking the target range for the federal funds rate to 3.75%-4.00%. It was the first interest hike since July 2023. Since then, the Federal Open Market Committee has lowered rates six times for a total of 175 basis points.
Analysts at Barclays commented: "The minutes suggest a return to risk management, alongside growing concern about inflation persistence and higher neutral rates. They reinforce our expectation of one additional hike this year, even though subsequent data and Fed communications signal patience in October.
"The minutes did little to lean against market expectations of an October pause, noting that most participants judged another hike would likely be appropriate by year-end, while emphasizing that future decisions would depend on incoming information and its implications for the outlook and balance of risks."
The yield on the US 10-year Treasury was quoted at 5.32%, steady from the time of the London equities close on Wednesday. The yield on the US 30-year Treasury was quoted at 5.70%, widening from 5.69%.
The dollar was largely higher against major counterparts but the euro did move back above the USD1.12 mark. The pound fell to USD1.3206 early Thursday from USD1.3210 late Wednesday afternoon. Against the euro, sterling fell to EUR1.1783 from EUR1.1807. On Wednesday, sterling hit its best level versus the single currency since June 2025.
The euro climbed to USD1.1203 from USD1.1187. Against the yen, the buck climbed to JPY158.28 from JPY158.13.
A barrel of Brent rose to USD102.64 on Thursday morning from USD101.77 late Wednesday afternoon.
The International Energy Agency's member countries stand ready to release additional oil from their strategic reserves if necessary and will prioritise diesel due to tight supplies of the fuel, the head of the IEA said Wednesday.
IEA member states still have ample reserves of crude oil and refined products and stand "ready to release more of these stocks to the market if and when required", Director Fatih Birol said in a statement.
Gold perked up to USD4,129.55 an ounce from USD4,109.52.
Thursday's local corporate calendar has half-year results from grocer Tesco and a trading statement from student accommodation provider Unite Group.
Thursday's global economic calendar has German trade data and initial jobless claims in the US.
Samsung Electronics shares were down 0.8% in Seoul. It said it expected sales to more than double in the third quarter of 2026 with operating profit considerably higher as the company benefits from strong memory chip demand.
The Suwon, South Korea-based electronics and memory chip manufacturer expects to report consolidated sales of KRW195 trillion for the third quarter that ended September 30, around USD145.50 billion, jumping from KRW86.062 trillion a year earlier.
Consolidated operating profit is forecast at KRW107.40 trillion, reflecting an almost ninefold increase from KRW12.166 trillion previously.
SPI Asset Management analyst Stephen Innes commented: "Samsung has just delivered the sort of earnings print that, in another semiconductor cycle, would have had traders reaching for increasingly ridiculous price targets before the opening bell.
"The numbers are extraordinary, but nobody buying Samsung today needed another reminder that AI is creating a memory shortage. The market already knows that. What it now has to decide is whether this earnings machine represents the middle of a longer runway or the sort of spectacular print that starts appearing just as the industry begins ordering too much capacity."
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.