30th Apr 2026 06:58
(Alliance News) - Stocks in London are set to open virtually flat on Thursday, as investors tread cautiously ahead of the Bank of England interest rate decision.
IG says futures indicate the FTSE 100 to open 2.4 points down, marginally lower, at 10,210.71 on Thursday. The index of London large-caps closed down 1.2% at 10,213.11 on Wednesday.
The US Federal Reserve left interest rates unchanged amid a "high level of uncertainty" as officials grapple with soaring oil prices.
In a widely expected move, the central bank voted 11-1 to keep the federal funds rate target range at 3.50%-3.75%, with Governor Stephen Miran dissenting in favour of a quarter-point cut.
However, in a sign of growing divisions on the Federal Open Market Committee, Governors Beth Hammack, Neel Kashkari and Lorie Logan said they did not support including an easing bias in the accompanying statement.
The FOMC noted that developments in the Middle East are contributing to elevated uncertainty around the economic outlook, although recent indicators suggest activity continues to expand at a solid pace.
Attention now turns to other central bank decisions on Thursday.
The Bank of England is due to announce its interest rate decision at 1200 BST, with consensus expecting a hold at 3.75%, while the European Central Bank is set to decide at 1315 BST, with the deposit rate also expected to remain unchanged at 2.00%.
Brent oil was trading at USD113.60 a barrel early Thursday, higher than USD111.01 late Wednesday.
Sterling was quoted at USD1.3467 early Thursday, lower than USD1.3491 at the London equities close on Wednesday. Against the euro, sterling rose to EUR1.1547 from EUR1.1530 a day prior.
The euro traded at USD1.1663 early Thursday, lower than USD1.1695 late Wednesday. Against the yen, the dollar was quoted at JPY160.53 versus JPY160.24.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 1.3%.
In China, the Shanghai Composite was marginally higher, while the Hang Seng index in Hong Kong was down 1.2%, as data showed manufacturing activity in the country remained in expansionary territory in April.
According to S&P Global, the RatingDog China manufacturing purchasing managers' index rose to 52.2 points from 50.8 in March, beating the FXStreet-cited consensus of 51.0.
However, official figures from the National Bureau of Statistics painted a more mixed picture, with the manufacturing PMI easing to 50.3 points from 50.4 and the non-manufacturing PMI slipping to 49.4 from 50.1, below expectations.
The S&P/ASX 200 in Sydney was down 0.4%.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.6%, the S&P 500 marginally lower and the Nasdaq Composite marginally higher.
It was also a busy period for corporate news after the market closed in the US, with several major technology firms reporting quarterly results.
Alphabet shares jumped 7.0% in after-hours trading after reporting a "terrific" start to the year, with first-quarter revenue beating expectations, driven by Google Search. The Mountain View, California-based group said net income rose to USD62.58 billion in the three months to March from USD34.54 billion a year earlier.
Microsoft edged up 0.3% in after-hours trading after beating expectations on both revenue and profit, supported by strong demand for its cloud products and services.
Amazon.com rose 2.8% after reporting net income of USD30.23 billion in the first quarter, up 77% from USD17.13 billion a year prior.
Meta Platforms, however, fell 7.0% after raising the midpoint of its 2026 capital expenditure guidance to USD135 billion, despite reporting better-than-expected first-quarter sales and revenue.
Gold was quoted at USD4,555.72 an ounce early Thursday, higher than USD4,551.30 on Wednesday.
In Thursday's corporate calendar, it is a busy day in London for updates, with Unilever, Beazley and Endeavour Mining reporting first-quarter results, while Glencore and Persimmon issue trading statements, among others.
In the economic calendar on Thursday, the eurozone releases GDP, CPI and unemployment data.
Across the region, France which just released GDP data publishes CPI and PPI figures, while Germany reports GDP and unemployment data, and Spain also releases GDP.
Meanwhile, in the US, GDP figures and initial jobless claims are due.
By Eva Castanedo, Alliance News reporter
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