10th Dec 2025 06:57
(Alliance News) - Stocks in London are set to open lower on Wednesday, ahead of the US Federal Reserve's interest rate decision.
"Recent economic data shows that the US economy is cooling in a manner consistent with what the Fed wants, but not weak enough to force the Fed to accelerate rate cuts," commented XS analyst Linh Tran. "Inflation is easing but still above target, while the labour market continues to display resilience."
IG says futures indicate the FTSE 100 to open down 26.5 points, 0.3%, on Wednesday. The index of London large-caps closed down 3.08 points at 9,642.01 on Tuesday.
Sterling was quoted at USD1.3309 early Wednesday, lower than USD1.3331 at the London equities close on Tuesday.
The euro traded at USD1.1631 early Wednesday, lower than USD1.1637 late Tuesday. Against the yen, the dollar was quoted lower at JPY156.71 versus JPY156.90.
In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.4%, the S&P 500 down 0.1% and the Nasdaq Composite up 0.1%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.1%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong was up 0.1%. The S&P/ASX 200 in Sydney closed down 0.1%.
Gold was quoted at USD4,206.50 an ounce early Wednesday, lower than USD4,214.16 on Tuesday.
Brent oil was trading at USD62.10 a barrel early Wednesday, higher than USD61.98 late Tuesday.
In Wednesday's corporate calendar, FTSE 100-listed housebuilder Berkeley Group will publish half-year results, while Volution, a manufacturer of ventilation equipment, holds its annual general meeting.
In the economic calendar on Wednesday, as well as the rate decision the US has FOMC Economic Projections, a monthly budget statement and other releases.
By Emma Curzon, Alliance News reporter
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