22nd Nov 2024 06:55
(Alliance News) - London's FTSE 100 is called to open higher on Friday, ahead of a UK retail sales reading a series of purchasing managers' index data from the continent, which could be key for the direction of the under pressure euro.
IG says futures indicate the FTSE 100 to open 32.0 points higher, 0.4%, at 8,181.27 on Friday. The index of London large-caps closed up 64.20 points, 0.8%, at 8,149.27 on Thursday.
Consumer confidence in the UK improved in November amid signs shoppers are ready to put political upheaval behind them to spend again on Black Friday and Christmas.
Growth from Knowledge's, GfK, long-running consumer confidence index rose by three points this month, although it remains firmly in negative territory at minus 18.
The improvement was driven by a jump in intentions to make major purchases – an indicator of confidence in buying big-ticket items – by five points to minus 16 in the run-up to Black Friday next week and eight points higher than this time last year.
The pound was quoted at USD1.2567 early Friday, down from USD1.2605 at the time of the London equities close on Thursday. The euro stood at USD1.0468, down from USD1.0491. Against the yen, the dollar was trading at JPY154.93 rising from JPY154.52.
The euro overnight fell to its lowest level since October 2023. The pound traded at its weakest level since May, falling as low as USD1.2565.
Friday's economic events calendar has a slew of flash composite purchasing managers' index readings, including the eurozone at 0900 GMT, the UK at 0930 GMT and the US at 1445 GMT. There is also a German gross domestic product reading at 0700 GMT, the same time as UK retail sales data.
SPI Asset Management analyst Stephen Innes commented: "The currency markets are wrestling with their own drama, particularly with the Euro under pressure. The overnight trading sessions saw the Euro taking hits, partly in anticipation of weaker European economic PMI data. However, the absolute juggernaut shaking the markets is Donald Trump's re-election and his appointment of Howard Lutnick as commerce secretary.
"Known for his staunch advocacy of Trump's hardline tariff and tax reform policies, Lutnick's appointment signals a potential escalation in U.S.-EU trade tensions. This looming threat poses a significant challenge for the Euro as European markets brace for the l economic stagnation, setting a stark contrast to the inflation narrative in the US It's a fact of life that may lead the ECB to cut jumbo 50 bp) possibly as soon as December in a pre-emptive US tariff move."
Before the PMI data, numbers are expected to reveal UK retail sales grew 3.4% on-year last month, according to consensus cited by FXStreet. It would represent a slowdown from 3.9% in September. Sales are expected to have fallen 0.3% in October from September. They had risen 0.3% in September from August.
In New York on Thursday, the Dow Jones Industrial Average rose 1.1%, the S&P 500 added 0.5% and the Nasdaq Composite closed flat.
In China on Friday, the Shanghai Composite was 2.6% lower in late trade. The Hang Seng in Hong Kong was down 2.0%. Tokyo's Nikkei 225 added 0.7%, while Sydney's S&P/ASX 200 rose 0.9%.
Brent oil was quoted at USD74.22 a barrel early Friday, as geopolitical tensions continue to simmer, rising from USD73.52 at the time of the London equities close on Thursday. Gold rose to USD2,690.02 an ounce from USD2,665.01.
By Eric Cunha, Alliance News news editor
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