17th Jul 2025 06:55
(Alliance News) - London's FTSE 100 is called to open higher on Thursday, ahead of a UK unemployment reading, and as eyes remain on the future of US Federal Reserve Chair Jerome Powell.
IG says futures indicate the FTSE 100 to open 43.1 points higher, 0.5%, at 8,969.65 on Thursday. The index of London large-caps closed down 11.77 points at 8,926.55 on Wednesday.
Sterling faded to USD1.3398 on Thursday morning UK time, from USD1.3473 at the time of the London equities close on Wednesday. The euro declined to USD1.1624 from USD1.1708, while against the yen, the dollar perked up to JPY148.40 from JPY147.97.
Thursday's global economic calendar has UK unemployment and average earnings data at 0700 BST, eurozone consumer price index print at 1000 and US initial jobless claims figures at 1330.
According to FXStreet cited consensus, numbers on Thursday are expected to show the UK jobless rate was unchanged at 4.6% in May. The data follows numbers from the ONS showing the UK annual consumer price inflation rate accelerated to 3.6% in June, from 3.4% in May.
"The data shouldn't deter the Bank of England from delivering a 25bp cut at the start of August, though it does put the kibosh on the idea that they would ditch their 'gradual and careful' policy guidance, and make a dovish turn as focus turns to supporting the labour market. Instead, my base case is now that just two 25bp cuts will be delivered over the remainder of the year, probably in August and November," Pepperstone analyst Michael Brown commented.
"The inflation figures add to what remains a grim UK backdrop – unemployment heading higher; payrolls having fallen for 7 months in a row; GDP having contracted for 2 months running; PMIs pointing to continued weakness in the months ahead; a rapidly widening budget deficit; and, retail sales having fallen off a cliff."
The yield on the 10-year US Treasury was at 4.48%, where it stood at the time of the European equities close on Wednesday. The 30-year yield shrunk to 5.03% from 5.06%.
In New York on Wednesday, the Dow Jones Industrial Average added 0.5%, while both the S&P 500 and Nasdaq Composite rose 0.3%.
US President Donald Trump said Wednesday that he was not currently planning to fire Federal Reserve Chair Powell, but added he was not ruling it out.
Trump's mixed messaging, after months of escalating attacks on the independent central bank chief, sent 30-year US Treasury bond yields surging above 5%.
Asked about whether he would eject Powell, Trump said he is "doing a lousy job but no, I'm not talking about that."
"I don't rule out anything, but I think it's highly unlikely," he added.
Trump noted that he would in any case be able to make a change at the top of the Fed when Powell's term ends next year.
Commerzbank analyst Michael Pfister commented: "Even if Trump ultimately refrains from dismissing Powell, he emphasised yesterday that he is only considering 'low interest rate' candidates for the position. This suggests that the Fed's monetary policy is likely to remain under pressure in the coming year, even without a formal dismissal. This is not a good sign for the US dollar."
In Tokyo on Thursday, the Nikkei 225 was up 0.2%. In China, the Shanghai Composite edged up 0.1%, while the Hang Seng Index was also up 0.1%. In Sydney, the S&P/ASX 200 was 0.8% higher in late trade.
In Tokyo, Seven & I Holdings was down 8.3%. Alimentation Couche-Tard abandoned its multi-billion-dollar bid to acquire the 7-Eleven parent company.
In a statement, Couche-Tard said it has withdrawn its proposal to acquire the Tokyo-based retail holding company due to what it described as a "lack of constructive engagement".
In August, the Quebec, Canada-based convenience store company first launched an unsolicited bid to acquire Seven & I that was later rejected.
Subsequent revisions reportedly valued Seven & I at USD47 billion, and in April, it was confirmed that a non-disclosure agreement was signed by both organisations to progress transaction discussions.
A response from Seven & I said: "While we are disappointed by ACT's decision, and disagree with their numerous mischaracterizations, we are not surprised."
A barrel of Brent rose to USD68.73 early Thursday, from USD67.87 at the time of the London equities close on Wednesday. Gold declined to USD3,337.91 an ounce from USD3,371.80.
Thursday's UK corporate calendar has trading statements from electricity generator SSE, low-cost airline easyJet and money transfers company Wise.
By Eric Cunha, Alliance News news editor
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