6th Nov 2024 06:56
(Alliance News) - Stocks in London are set to open higher on Wednesday, as US election results are counted with many investors betting on a win for Donald Trump.
Pepperstone's Chris Weston noted that "while there are still votes to be counted in many of the swing states, the betting markets have swung to a view that Trump has the election in the bag" with "the USD index at one stage rising by the most since March 2020".
He continued: "However, as the session has worn on some of the heat has come out of the move, with US equity futures coming off their earlier highs – perhaps this is a reflection that Trump tariffs...will impact corporate margins, and raise the price level on a range of goods that will be a tax on the consumer."
IG says futures indicate the FTSE 100 to open up 62.5 points, 0.8%, at 8,234.89 on Wednesday. The index of London large-caps closed down 0.1% at 8,172.39 on Tuesday.
Sterling was quoted at USD1.2856 early Wednesday, lower than USD1.3003 at the London equities close on Tuesday.
The euro traded at USD1.0718 early Wednesday, lower than USD1.0917 late Tuesday. Against the yen, the dollar was quoted up at JPY154.24, up versus JPY152.08.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, the S&P 500 up 1.2% and the Nasdaq Composite up 1.4%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 2.5%. In China, the Shanghai Composite was down 0.6%, while the Hang Seng index in Hong Kong was down 2.4%. The S&P/ASX 200 in Sydney closed up 0.8%.
Gold was quoted at USD2,711.32 an ounce early Wednesday, lower than USD2,736.94 on Tuesday.
Brent oil was trading at USD73.93 a barrel early Wednesday, lower than USD76.10 late Tuesday.
In Wednesday's corporate calendar, planned releases include Marks & Spencer's half-year earnings, as well as trading statements from Beazley and JD Wetherspoon.
In the economic calendar on Wednesday, there are composite PMI reads from France, Germany and other countries, plus the UK construction PMI.
By Emma Curzon, Alliance News reporter
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