25th Apr 2024 06:48
(Alliance News) - Stocks in London are set to open slightly lower on Thursday, ahead of data on the health of the US economy.
IG says futures indicate the FTSE 100 to open down 1.4 points at 8038.98 on Thursday.
The index of London large-caps closed down 4.43 points, 0.1%, at 8,040.38 on Wednesday. The blue-chip index traded as high as 8,092.19 earlier Wednesday, its best-ever level. Selling pressure in the afternoon prevented it from achieving another closing high, however.
The Bank of England's Chief Economist Huw Pill on Tuesday said interest rate cuts are "somewhat closer" than last month, though he added the economic outlook has "not changed substantially" and there are still risks if bank policymakers reduce rates too early.
All eyes are now on US economic data. Thursday's economic calendar has a gross domestic product reading at 1330 BST.
Sterling was quoted at USD1.2470 early Thursday, higher than USD1.2432 at the London equities close on Wednesday.
The euro traded at USD1.0710 early Thursday, higher than USD1.0687 late Wednesday. Against the yen, the dollar was quoted at JPY155.72, higher versus JPY155.06.
In the US on Wednesday, Wall Street ended mixed. The Dow Jones Industrial Average closed down 0.1%. The S&P 500 closed up marginally and the Nasdaq Composite up 0.1%.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 2.1%. In China, the Shanghai Composite was up 0.3%, while the Hang Seng index in Hong Kong was up 0.3%.
In Sydney, financial markets were closed for Anzac Day.
In early corporate news, miner Anglo American confirmed Thursday it was "reviewing" a takeover bid from its larger Australian rival BHP Group, in what would rank as one of the sector's biggest deals in years.
Anglo American did not disclose the price of the "unsolicited" offer, which must be sewn up before a deadline of May 22.
BHP's offer would first hinge on Anglo American splitting off its platinum and iron ore operations in South Africa. Anglo's platinum operations are listed on the Johannesburg Stock Exchange under Anglo American Platinum, as are its iron ore operations under Kumba Iron Ore.
Australian-based BHP has a market value of around USD148 billion, while London-based Anglo American has a market value of about USD36 billion.
"The buyout offer from BHP, the world’s largest publicly listed miner, for Anglo American, won’t just shake up the mining industry, but will send a fresh chill through the City of London. There are concerns that if the deal goes through it could be the tip of the iceberg and more giants could leave the exchange," said Hargreaves Lansdown analyst Susannah Streeter.
Still to come in Thursday's corporate calendar, there are first-quarter results from AstraZeneca, lender Barclays, consumer goods firm Unilever and FTSE Russell owner London Stock Exchange Group. Grocer Sainsbury's reports annual results.
Gold was quoted at USD2,316.90 an ounce early Thursday, lower than USD2,329.42 on Wednesday. Brent oil was trading at USD88.17 a barrel early Thursday, higher than USD88.12 late Wednesday.
By Sophie Rose, Alliance News senior reporter
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