(Alliance News) - Stocks in London are set to open higher on Thursday, following rallies across the globe, and ahead of the Bank of England interest rate decision.
IG says futures indicate the FTSE 100 to open up 71.7 points, 0.9%, at 7,809.08 on Thursday. The index of London large-caps closed down just 0.92 of a point at 7,737.38 on Wednesday.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, the S&P 500 up 0.9% and the Nasdaq Composite up 1.3%
The Bank of England decision is at midday on Thursday. Markets are expecting the central bank to keep rates unchanged.
The decision follows the US Federal Reserve on Wednesday.
The Fed left interest rates unmoved, as expected, while its latest set of projections still suggest three cuts will be in the offing this year. The central bank's federal funds rate range was unmoved at 5.25%-5.50%.
The core personal consumption expenditures inflation rate forecast, the Fed's preferred gauge, was nudged higher. A rate of 2.6% is now expected for 2024, hotter than the 2.4% prediction in December. The forecasts of 2.2% and 2.0% for 2025 and 2026 were unchanged.
Fed policymakers also upgraded the US growth outlook for this year to 2.1%, from 1.4% in December.
However, Fed Chair Jerome Powell refrained from giving a steer on when interest rates would be cut after projections showed three reductions are still on the cards in 2024.
"I really don't have anything for you" on any specific meeting call, he said, stressing decisions would be made on a meeting-by-meeting basis.
Gold rallied to a fresh record above USD2,200 on Thursday as traders welcomed the Fed signal that it would cut interest rates three times this year. Gold was quoted at USD2,205.98 an ounce early Thursday, higher than USD2,157.96 on Wednesday.
Sterling was quoted at USD1.2792 early Thursday, higher than USD1.2717 at the London equities close on Wednesday. The euro traded at USD1.0936 early Thursday, higher than USD1.0856 late Wednesday.
Against the yen, the dollar was quoted at JPY151.06, down versus JPY151.61.
In Asia on Thursday, the Nikkei 225 index in Tokyo was up 2.0%. In China, the Shanghai Composite was up marginally, while the Hang Seng index in Hong Kong was up 2.2%. The S&P/ASX 200 in Sydney closed up 1.1%.
Brent oil was trading at USD86.38 a barrel early Thursday, higher than USD85.93 late Wednesday.
Thursday's UK corporate calendar has annual results from retailer Next and insurer Direct Line.
As well as the BoE decision, there are a slew of flash composite purchasing managers' index readings, including the eurozone at 0900 GMT, the UK at 0930 and the US at 1345.
By Sophie Rose, Alliance News senior reporter
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