18th Jul 2024 07:09
(Alliance News) - Stocks in London are set to open higher on Thursday, ahead of an interest rate decision from the eurozone, and following news that President Biden has Covid-19, announced shortly after he said he would consider dropping his re-election bid if diagnosed with a serious medical condition.
IG says futures indicate the FTSE 100 to open 0.5% higher on Thursday. The index of London large-caps closed up 22.56 points, 0.3%, at 8,187.46 on Wednesday.
Sterling was quoted at USD1.3011 early on Thursday, higher than USD1.3008 at the London equities close on Wednesday.
The euro traded at USD1.0937 early on Thursday, higher than USD1.0934 late Wednesday. Against the yen, the dollar was quoted at JPY156.09, down versus JPY156.60.
In the US on Wednesday, Wall Street ended primarily lower, with the Dow Jones Industrial Average up 0.6%, but the S&P 500 down 1.4% and the Nasdaq Composite down 2.8%.
US President Joe Biden tested positive for Covid with mild symptoms Wednesday, shortly after conceding he would consider dropping his re-election bid if doctors diagnosed him with a serious medical condition, reported AFP.
The infection comes at a critical moment for Biden's campaign, with the president seeking to show he is up to the job after a debate against rival Donald Trump sparked concerns about his health, and calls from some Democrats for him to step aside.
Biden was forced to cancel a speech to a union representing Latino workers who will be crucial for his election bid, having attended a campaign event earlier in the day and given a radio interview.
On the other side of the metaphorical aisle, Trump's running mate, JD Vance, delved into his personal history for a speech at the Republican convention on Wednesday.
Vance, who famously chronicled his difficult upbringing in best-selling memoir 'Hillbilly Elegy', reflected on how his Ohio hometown had been blighted by closed factories and addiction.
Of his grandmother, he said: "When we went through her things we found 19 loaded handguns...They were stashed all over her house – under her bed, in her closet, in the silverware drawer...this frail old woman made sure that no matter where she was, she was within arm's length of whatever she needed to protect her family."
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 2.2%. In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong was up 0.5%. The S&P/ASX 200 in Sydney closed down 0.3%.
Japanese exports rose 5.4% in June from a year earlier, according to data from the Ministry of Finance, compared with a 14% increase in May and consensus estimates of a 7.2% increase. Meanwhile, imports rose 3.2% in June from the year before, compared with a 9.6% gain estimated by analysts.
Accordingly, the trade surplus came to JPY244.04 billion, about USD1.44 billion, in June, marking Japan's first time in the black for three months and swung from a deficit of JPY1.22 trillion in May.
Gold was quoted at USD2,468.70 an ounce early on Thursday, higher than USD2,464.08 on Wednesday.
Brent oil was trading at USD85.45 a barrel early on Thursday, higher than USD84.80 late Wednesday.
On Thursday's corporate calendar, there are quarterly results from AJ Bell, Kier Group, and Big Yellow Group. Half and full-year results are due from Carclo, Creightons, Herald Investment, and Sondrel, while Anglo American, Artisanal Spirits, Qinetiq, and SSE will publish trading statements.
On the economic calendar, there is unemployment data from the UK at 0700 BST. Elsewhere, there is construction output data from the eurozone at 1000 BST, followed by an interest rate decision from the European Central Bank at 1315 BST.
Later in the day, there is a handful of data from the US, including initial jobless claims, the Philadelphia Fed manufacturing index, and the Conference Board leading index. Federal Reserve Governor Michelle Bowman is also due to make a speech.
By Holly Beveridge, Alliance News senior reporter
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