18th Dec 2024 06:59
(Alliance News) - The FTSE 100 is set to open higher on Wednesday, with investors' eyes mainly on the US Federal Reserve's interest rate decision due this afternoon and generally expecting a quarter-point cut.
"US stocks tumbled across the board on Tuesday, with the Dow marking its longest losing streak in 46 years," commented SPI's Stephen Innes. "This downturn suggests insufficient sector reindeer are pulling their weight to sustain Santa's holiday rally sleigh, especially against an increasingly perceived hawkish Fed outlook."
He continued: "Inside the Fed and Wall Street corridors, tension is palpable as Chair Jerome Powell navigates the choppy waters of a hotter-than-expected US labour market and stubbornly high inflation rates. These factors juxtapose sharply with global uncertainties but still should compel Powell and his team to recalibrate their monetary policy approach potentially hawkishly.
"As market dynamics hang in the balance, investors are keenly awaiting the Fed's Summary of Economic Projections and Powell's insights during the post-meeting press conference, anticipated to hint at a pullback on policy easing."
IG says futures indicate the FTSE 100 to open up 3.7 points, 0.1%, on Wednesday. The index of London large-caps closed down 0.8% at 8,195.20 points on Tuesday.
Sterling was quoted at USD1.2710 early Wednesday, marginally higher than USD1.2707 at the London equities close on Tuesday.
The euro traded at USD1.0510 early Wednesday, higher than USD1.0498 late Tuesday. Against the yen, the dollar was quoted lower at JPY153.39 versus JPY153.57.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.6%, the S&P 500 down 0.4% and the Nasdaq Composite down 0.3%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.7%. In China, the Shanghai Composite was up 0.5%, while the Hang Seng index in Hong Kong was up 0.8%. The S&P/ASX 200 in Sydney closed down 0.1%.
Gold was quoted at USD2,646.25 an ounce early Wednesday, higher than USD2,637.16 on Tuesday.
Brent oil was trading at USD73.16 a barrel early Wednesday, higher than USD72.70 late Tuesday.
In Wednesday's corporate calendar, IntegraFin and Jersey Electricity release full-year results.
In the economic calendar on Wednesday, the UK and eurozone release consumer inflation data.
By Emma Curzon, Alliance News reporter
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