19th Aug 2024 06:46
(Alliance News) - Stocks in London are set to open flat on Monday, as investors nervously await the Jackson Hole symposium this week.
IG says futures indicate the FTSE 100 to open down 2.0 points, almost flat, at 8,309.41 on Monday. The index of London large-caps closed down 35.94 points, 0.4%, at 8,311.41 on Friday.
The US Federal Reserve needs to take a gradual approach to lowering borrowing costs, one of its top officials has said, as the world's leading central bankers prepare to gather at the Jackson Hole central bank economic symposium in Wyoming this week.
Mary Daly, president of the San Francisco Fed, told the FT on Sunday that recent economic data have given her "more confidence" that inflation is under control.
It is time to consider adjusting borrowing costs from their current range of 5.25% to 5.5%, she said.
Daly's call for a "prudent" approach, however, pushed back on economists' concerns that the world's largest economy is heading for a sharp slowdown that warrants rapid cuts in interest rates.
In politics, the "headline act" this week will be the Democratic National Convention, which officially starts at the United Center in Chicago on Monday with more than 50,000 people expected to attend over the following few days, the FT said.
This year's DNC will feature speeches by President Joe Biden, then former presidents Barack Obama and Bill Clinton before the arrival on Thursday of Kamala Harris for her 'coronation' address.
Sterling was quoted at USD1.2955 early Monday, higher than USD1.2899 at the London equities close on Friday. The euro traded at USD1.1044 early Monday, higher than USD1.0995 late Friday.
Against the yen, the dollar was quoted at JPY145.71, down versus JPY148.24.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all closing up 0.2%.
In Asia on Monday, the Nikkei 225 index in Tokyo was down 1.4%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was up 0.9%. The S&P/ASX 200 in Sydney closed up 0.1%.
Gold was quoted at USD2,501.90 an ounce early Monday, higher than USD2,486.76 on Friday.
Brent oil was trading at USD79.39 a barrel early Monday, lower than USD79.91 late Friday.
In Monday's corporate calendar, there are half year results from Thungela Resources due out.
In the economic calendar on Monday US Federal Reserve Governor Christopher Waller will speak.
By Sophie Rose, Alliance News senior reporter
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