17th Apr 2025 06:52
(Alliance News) - Stocks in London are set to open lower on Thursday, after remarks from Federal Reserve Chair Jerome Powell that US tariffs could force the Fed to choose between tackling inflation and unemployment.
"Tariffs are highly likely to generate at least a temporary rise in inflation," Fed Chair Jerome Powell told the Economic Club of Chicago, according to prepared remarks, warning that the inflationary effects "could also be more persistent".
European Central Bank policymakers, meanwhile, look increasingly likely to cut interest rates again on Thursday, with US President Donald Trump's stop-start tariff announcements sowing concern in the eurozone.
"US tariffs on the EU and many other countries have brought back growth concerns for the eurozone, at least in the nearer term," ING analyst Carsten Brzeski said. For the members of the ECB's governing council meeting in Frankfurt, a pause in rate cutting was "no longer an option", he added.
IG says futures indicate the FTSE 100 to open down 20.2 points, 0.2%, on Thursday. The index of London large-caps closed up 0.3% at 8,275.60 on Wednesday.
Sterling was quoted at USD1.3206 early Thursday, lower than USD1.3228 at the London equities close on Wednesday.
The euro traded at USD1.1345 early Thursday, lower than USD1.1363 late Wednesday. Against the yen, the dollar was quoted slightly higher at JPY142.79 versus JPY142.75.
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.7%, the S&P 500 down 2.2% and the Nasdaq Composite down 3.1%.
In Asia on Thursday, the Nikkei 225 index in Tokyo was up 1.0%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 1.3%. The S&P/ASX 200 in Sydney was up 0.5%.
Gold was quoted at USD3,322.86 an ounce early Thursday, lower than USD3,324.19 on Wednesday.
Brent oil was trading at USD66.57 a barrel early Thursday, higher than USD65.73 late Wednesday.
In Thursday's corporate calendar, there are trading updates from Dunelm and Rentokil.
In the economic calendar on Thursday, as well as the eurozone rate call and press conference. The US has initial jobless claims, alongside other releases.
By Emma Curzon, Alliance News reporter
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