18th Nov 2024 07:00
(Alliance News) - Stocks in London are set to open higher on Monday, ahead of UK inflation data later this week and as the US Federal Reserve braces for seemingly inevitable confrontations with President-elect Donald Trump.
"Trump has made it clear that he won't tolerate rate hike headwinds against his economic agenda," commented SPI's Stephen Innes. "If inflation starts to roar under his policies - whether driven by aggressive tariffs, a spike in infrastructure spending, or policies with echoes of Erdogan's playbook - expect him to demand rate cuts, irrespective of the consequences. The Fed's independence may legally protect Powell, but in this political climate, the unimaginable has a way of becoming reality."
IG says futures indicate the FTSE 100 to open up 16.3 points, 0.2%, at 8,079.91 on Monday. The index of London large-caps closed down 0.1% on Friday.
Sterling was quoted at USD1.2637 early Monday, slightly lower than USD1.2639 at the London equities close on Friday.
The euro traded at USD1.0544 early Monday, higher than USD1.0538 late Friday. Against the yen, the dollar was quoted lower at JPY154.49 versus JPY154.72.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.7%, the S&P 500 down 1.3% and the Nasdaq Composite down 2.2%.
In Asia on Monday, the Nikkei 225 index in Tokyo was down 1.1%. In China, the Shanghai Composite was down 0.5%, while the Hang Seng index in Hong Kong was up 0.6%. The S&P/ASX 200 in Sydney closed up 0.2%.
Gold was quoted at USD2,586.53 an ounce early Monday, higher than USD2,569.63 on Friday.
Brent oil was trading at USD71.12 a barrel early Monday, lower than USD72.08 late Friday.
In Monday's corporate calendar, releases include half-year results from Big Yellow Group and Sirius Real Estate.
In the economic calendar on Monday, look out for trade balance data from the eurozone and comments from Bank of England Governor Andrew Bailey.
By Emma Curzon, Alliance News reporter
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