21st Mar 2025 06:51
(Alliance News) - Stocks in London are set to open flat on Friday, as a week stacked with interest rate decisions draws to a close.
The Bank of Japan, Federal Reserve and Bank of England all left rates unmoved this week.
IG says futures indicate the FTSE 100 to open just 0.4 points higher at 8,702.39 on Friday. The index of London large-caps closed down 4.67 points, 0.1%, at 8,701.99 on Thursday. It has risen 0.8% this week.
The pound faded to USD1.2935 on Friday morning from USD1.2964 at the time of the London equities close on Thursday. The euro slipped to USD1.0836 from USD1.0847. Against the yen, the dollar rose to JPY149.49 from JPY148.78.
The BoE had earlier pledged a gradual and careful approach to monetary policy as it left interest rates unchanged amid slowing growth and elevated inflation.
At the conclusion of its two-day meeting, the BoE's Monetary Policy Committee voted by a majority of 8 to 1 to maintain bank rate at 4.50%. Swati Dhingra preferred a quarter point cut to 4.25%. A 7-2 vote split had been expected.
"Although the vote was more hawkish than expected, our base case remains that the BoE will cut rates again in May. Although it was emphasised that rate cuts should be gradual, the risks to the real economy suggest that a slightly less restrictive real interest rate may be appropriate. We therefore expect market expectations to shift more towards a rate cut in the coming weeks, which should weigh on the pound," Commerzbank analyst Michael Pfister commented.
In New York, the Dow Jones Industrial Average ended slightly lower, the S&P 500 lost 0.2% and the Nasdaq Composite gave back 0.3%.
In China, the Shanghai Composite was down 1.3%, while the Hang Seng Index in Hong Kong slumped 2.2%. Tokyo's Nikkei 225 was marginally lower. The S&P/ASX 200 rose 0.2%.
Japan's core inflation rate decelerated in February, government data showed Friday, with prices excluding fresh food rising 3.0% year-on-year in the world's fourth-largest economy.
The core consumer price index slowed from 3.2% in January, remaining above the Bank of Japan's 2% target which has been exceeded every month since April 2022.
Overall, when volatile fresh food was included, prices in February were up 3.7% year-on-year – among the highest rate in the Group of Seven – exceeding market expectations of 3.5%, but slowing from 4.0% in January.
A barrel of Brent rose to USD72.07 early Friday, from USD71.89 late Thursday. Gold traded at USD3,031.51 an ounce, down from USD3,035.20.
Friday's UK corporate calendar has half-year results from pub chain JD Wetherspoon and first quarter results from cruise operator Carnival.
The economic calendar for Friday has UK public sector net borrowing data, eurozone consumer confidence figures and Canadian retail sales numbers.
More than 1,300 flights to and from Heathrow Airport will be disrupted on Friday due to the closure of the airport following a fire at a nearby electrical substation.
Thousands of homes have been left without power and more than 100 people were evacuated after a transformer within the North Hyde electrical substation caught fire in west London.
The airport, which is supplied by the substation, said it was among those impacted by the power outage.
Online flight tracking service FlightRadar24 said the closure would affect at least 1,351 flights to and from Heathrow.
British Airways warned that the closure of Heathrow airport, its main hub, would significantly affect operations.
By Eric Cunha, Alliance News news editor
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