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LONDON MARKET EARLY CALL: Stocks flat with "fewer rate cuts" on table

4th Nov 2024 06:57

(Alliance News) - Stocks in London are set to open flat on Monday, as participants prepare for rate calls later this week from the Bank of England and US Federal Reserve.

Predicting "more growth, fewer rate cuts" in the UK's future, Berenberg's Andrew Wishart wrote: "Due to the plans for much higher government consumption unveiled in the budget, we raise our forecast for real GDP growth in 2025 from 1.5% YoY to 1.7%. With unemployment low, stronger demand will cause inflation to drift back up to an average of 2.6% YoY in 2025.

"The Bank of England will have to lean against looser fiscal policy, likely by ending its rate-cutting cycle after just three more cuts at 4.25% in Q2 2025, rather than 4.0% in Q3, as we had previously expected."

IG says futures indicate the FTSE 100 to open up 0.2 points, essentially flat, on Monday. The index of London large-caps closed at 8,177.15 on Friday.

Sterling was quoted at USD1.2988 early Monday, higher than USD1.2949 at the London equities close on Friday.

The euro traded at USD1.0895 early Monday, higher than USD1.0847 late Friday. Against the yen, the dollar was quoted at JPY152.06 versus JPY153.02.

In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.1%, the S&P 500 0.9% higher, and the Nasdaq Composite climbing 1.3%.

In Asia on Monday, the Shanghai Composite was up 1.0%, while the Hang Seng index in Hong Kong was up 0.1%. The S&P/ASX 200 in Sydney closed up 0.6%.

Gold was quoted at USD2,737.54 an ounce early Monday, lower than USD2,741.43 on Friday.

Brent oil was trading at USD74.36 a barrel early Monday, higher than USD73.64 late Friday.

In Monday's corporate calendar, there are half-year results from Ryanair and earnings from global companies including Nintendo, Marriott and Illumina.

In the economic calendar, financial markets in Tokyo are closed for Japan's Culture Day. Releases include manufacturing PMIs from Spain, France and the eurozone.

By Emma Curzon, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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