14th Oct 2024 07:07
(Alliance News) - Stocks in London are set to open lower on Monday, ahead of data from the US, and following an inflationary print from China.
IG says futures indicate the FTSE 100 to open 7.2 points, or 0.1%, lower at 8,246.10 on Monday. The index of London large-caps closed up 15.92 points, or 0.2%, at 8,253.65 on Friday.
The UK budget will focus on boosting living standards, reviving the NHS and "rebuilding Britain", Prime Minister Keir Starmer said as he signalled investment in schools, housing and transport.
Chancellor Rachel Reeves will deliver her first budget on October 30 following gloomy warnings about the tough decisions and tax rises needed to deal with the economic legacy left by the Tories.
But Starmer indicated that the focus of the financial statement will be on "making people better off".
The prime minister said his three priorities were "driving up living standards – making sure people feel better off, making sure our NHS is back on its feet and fit for the future, and that we're rebuilding the country, particularly what we're doing on housing".
Sterling was quoted at USD1.3058 early on Monday, lower than USD1.3074 at the London equities close on Friday.
The euro traded at USD1.0924 early Monday, lower than USD1.0942 late Friday. Against the yen, the dollar was quoted at JPY149.30 versus JPY149.13.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, the S&P 500 up 0.6% and the Nasdaq Composite up 0.3%.
In Asia on Monday, the Shanghai Composite in China was up 1.6%, while the Hang Seng index in Hong Kong was down 0.2%. The S&P/ASX 200 in Sydney closed up 0.5%.
The Japanese market is closed for Sports Day.
China's consumer inflation rate slowed in September, official data showed, in a sign that demand remains fragile in the world's number two economy.
The consumer price index, a key measure of inflation, rose 0.4% year-on-year in September, cooling from the 0.6% climb recorded in August, the National Bureau of Statistics said.
The figure came in below the 0.6% forecast in a Bloomberg survey of economists. August's figure, the highest level since February, had raised hopes that consumer confidence may be picking up.
At the end of 2023, the country had sank into deflation for four months, with the sharpest contraction in consumer prices in 14 years in January.
Also on Monday, China said it would issue special bonds to help its sputtering economy, signalling a spending spree to bolster banks, shore up the property market and ease local government debt as part of one of its biggest support packages in years.
The plan is part of a series of actions undertaken by Beijing to draw a line under a years-long property sector crisis and chronically low consumption that has plagued the world's second biggest economy.
China is also preparing to allow local governments to borrow more to fund the acquisition of unused land for development. Officials have been battling to reverse China's slowdown and achieve a growth target of 5% this year – enviable for many Western countries but a far cry from the double-digit expansion that for years boosted the Asian nation.
Gold was quoted at USD2,656.29 an ounce early Monday, lower than USD2,658.30 on Friday.
Brent oil was trading at USD77.91 a barrel early Monday, lower than USD78.67 late Friday.
In Monday's corporate calendar, there are half-year results from1Spatial, and trading statements from Ashmore, Chemring, and PageGroup.
In the economic calendar on Monday, there are several speeches, including from Deutsche Bundesbank President Joachim Nagel, and UK Bank of England Monetary Policy Committee member, Swati Dhingra. Later in the day, there are US consumer inflation expectations.
By Holly Beveridge, Alliance News senior reporter
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