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(Alliance News) - Stocks in London are set to open slightly higher on Monday, following positive trading in Asia, as the week gets off to a quiet start.
IG says futures indicate the FTSE 100 index of large-caps to open up 17.2 points, 0.2%, at 7,889.11 on Monday. The FTSE 100 index closed up 28.53 points, or 0.4% at 7,871.91 on Friday.
In Asia on Monday, the Nikkei 225 index was up 0.1%. In China, the Shanghai Composite was up 1.2%, while the Hang Seng index in Hong Kong was up 0.8%. The S&P/ASX 200 in Sydney was up 0.2%.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.4%, the S&P 500 down 0.2% and the Nasdaq Composite down 0.4%.
"Some really strong quarterly numbers from US banks prompted speculation that the Federal Reserve might have to hike rates by more than a single hike of 25bps, which most people had been expecting at the next meeting in just over a fortnight's time," said CMC Markets' Michael Hewson.
The policy-setting Federal Open Market Committee next meets on May 2 and 3.
JPMorgan closed up 7.6% on Friday, after it reported a first-quarter revenue beat, though it warned of the impact of tighter financial conditions. Citigroup rose 4.8% as it hailed a strong quarter for its fixed income arm and reported better results despite a "tumultuous environment for banks".
There will be more earnings from US banks this week, with Goldman Sachs and Bank of America reporting on Tuesday.
The dollar was firmer, given the increased expectation of further interest rate hikes from the Federal Reserve.
Sterling was quoted at USD1.2412 early Monday, lower than USD1.2427 at the London equities close on Friday. The euro traded at USD1.0985, little changed from USD1.0987. Against the yen, the dollar was quoted at JPY134.15, up versus JPY133.68.
Gold was priced at USD2,004.58 an ounce early Monday, higher than USD1,997.18 on Friday. Brent oil was trading at USD86.26 a barrel, slightly lower than USD86.42.
In early UK company news, Barclays is set to cut over 100 roles at its investment banks, according to a Sky News report late Sunday. This comes amid a lower rate of dealmaking and initial public offerings, Sky noted.
It would be the second round of layoffs in less than six months, Sky noted, given that last November Barclays was reported to have axed around 200 jobs at its investment bank.
In Monday's UK company calendar, there are trading statements from FTSE 250-listed emerging markets investor Ashmore and recruitment company PageGroup.
In the economic calendar, it's a quiet start to the week, with a speech from Bank of England Deputy Governor Jon Cunliffe.
UK unemployment figures are published on Tuesday, ahead of UK inflation data on Wednesday. On Friday, there are a slew of PMI prints from the EU, UK, and the US.
By Elizabeth Winter, Alliance News senior markets reporter
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