LONDON MARKET EARLY CALL: FTSE 100 seen up ahead of UK GDP

(Alliance News) - Stocks in London are set to open higher on Thursday, as investors monitor the latest developments from the US-China summit and brace for a heavy slate of UK economic data.

IG says futures indicate the FTSE 100 to open up 32.0 points, 0.3%, at on 10,357.35 on Thursday. The index of London large-caps closed 0.6% higher at 10,325.35 on Wednesday.

US President Donald Trump told Chinese counterpart Xi Jinping that their countries would have a "fantastic future together" as the two leaders opened a high-stakes summit in Beijing focused on Iran, trade and Taiwan.

Praising Xi, Trump said it was "an honour to be your friend", while the Chinese leader struck a more measured tone, saying the US and China "should be partners and not rivals". Xi added that "a stable China-US relationship is a boon for the world" and warned that "cooperation benefits both sides, while confrontation harms both".

Chinese state media also reported Xi warned Trump that relations could deteriorate sharply if the issue of Taiwan was mishandled. "The Taiwan question is the most important issue in China-US relations," Xi said, according to state broadcaster CCTV. "If mishandled, the two nations could collide or even come into conflict."

Brent oil was trading at USD106.08 a barrel early Thursday, lower than USD107.33 late Wednesday.

Back in the UK, Labour Party turmoil continued as Health Secretary Wes Streeting reportedly considered launching a leadership challenge against Prime Minister Keir Starmer.

Streeting is believed to have told allies he is preparing to resign on Thursday and announce a bid for the premiership after divisions within Labour erupted into the open earlier this week.

Efforts to force Starmer from Downing Street appeared to lose momentum on Wednesday, with no fresh ministerial resignations or public calls from backbench MPs for him to step down as attention shifted to the King's Speech. However, Labour's trade union backers withdrew support for Starmer, while Streeting's team declined to deny reports he was preparing to quit.

Sterling was quoted at USD1.3519 early Thursday, marginally lower than USD1.3520 at the London equities close on Wednesday. Against the euro, sterling fell slightly to EUR1.1541 from EUR1.1542 a day prior.

The euro traded at USD1.1714 early Thursday, marginally lower than USD1.1715 late Wednesday. Against the yen, the dollar was quoted at JPY157.89 versus JPY157.81.

Attention in London will also turn to a heavy batch of UK economic data due at 0700 BST.

Consensus expects UK gross domestic product to decline 0.2% month-on-month in March after a 0.5% increase in February. First estimates for first-quarter GDP are expected to show annual growth slowing to 0.8% from 1.0% in the fourth quarter, while quarterly growth is forecast at 0.6%, up from 0.1% previously.

UK industrial output is also expected to fall 0.3% month-on-month in March after rising 0.5% in February.

In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.1%, the S&P 500 up 0.6% and the Nasdaq Composite up 1.2%.

In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.6%. In China, the Shanghai Composite was down 0.8%, while the Hang Seng index in Hong Kong rose 0.4%. The S&P/ASX 200 in Sydney was marginally lower.

Gold was quoted at USD4,699.76 an ounce early Thursday, higher than USD4,690.487 on Wednesday.

Back in the UK, survey data from the Royal Institution of Chartered Surveyors suggested house prices remained under pressure in April.

The net balance for house prices fell to minus 34% from a revised minus 25% in March, significantly weaker than the FXStreet-cited consensus forecast for a minus 25% reading. The agreed sales balance also weakened slightly to minus 36% from a revised minus 35%.

In Thursday's corporate calendar, Aviva reports first-quarter results, while Burberry, National Grid, United Utilities and Land Securities publish full-year figures. Future also releases half-year results.

In the economic calendar on Thursday, European Central Bank President Christine Lagarde is due to speak. Ireland publishes CPI data, while the UK releases GDP, industrial production and manufacturing output figures.

In the US, retail sales, export and import prices and initial jobless claims are due.

By Eva Castanedo, Alliance News reporter

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