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LONDON MARKET EARLY CALL: FTSE 100 called higher; eyes turn to US data

Mon, 12th Feb 2024 06:53

(Alliance News) - Stocks in London are set to open higher on Monday, following a record close for the S&P 500 in New York on Friday, as focus moves to a US inflation reading later this week.

IG says futures indicate the FTSE 100 to open 16.8 points higher, or 0.2%, at 7,589.38 on Monday. The index of London large-caps closed down 22.90 points, 0.3%, at 7,572.58 on Friday. It lost 0.6% last week.

In Sydney, the S&P/ASX 200 ended down 0.4%. Financial markets in Shanghai and Tokyo are closed for the Chinese New Year and National Day holidays, respectively.

In New York on Friday, the Dow Jones Industrial Average closed down 0.1%, but the S&P 500 added 0.6%, hitting a new closing high in the process, while the Nasdaq Composite shot up 1.3%.

"In the coming week, traders and investors must consider several macroeconomic indicators, including a consumer price index report from the world's largest economy. A higher-than-expected CPI reading could potentially upend the epic equity market rally," SPI Asset Management analyst Stephen Innes commented.

The US inflation data is reported at 1330 GMT on Tuesday.

It is also a key week for UK data. Unemployment, inflation and economic growth readings will be closely eyed by the Bank of England, with the next interest rate decision from Threadneedle Street around five weeks away.

"The market has pared back Bank of England easing expectations. The first cut is now priced in for August and only 75 basis points of total easing is seen in 2024. Compare this to the start of this year, when markets saw the first cut in June and nearly 125 bp of total easing in 2024," Brown Brothers Harriman analysts commented.

The pound was quoted at USD1.2629 early Monday, largely unmoved from USD1.2632 late on Friday. The euro stood at USD1.0791, up from USD1.0783. Against the yen, the dollar was trading at JPY149.18, down from JPY149.31.

Brent oil was quoted at USD81.86 a barrel early Monday in London, down from USD82.03 late Friday. Gold fetched UD2,023.74 an ounce, rising slightly from USD2,021.73.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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