(Alliance News) - Stocks in London are set to open higher on Thursday, ahead of a eurozone inflation reading.
IG says futures indicate the FTSE 100 index of large-caps to open up 15.5 points, 0.2%, at 7,930.43 on Thursday. The index closed up 38.65 points, or 0.5% at 7,914.93 on Wednesday.
"European markets got off to a broadly negative start to the month yesterday, except for the FTSE 100, which managed to finish the session higher, due to a decent performance from the basic resource sector on optimism over the China reopening story," explained CMC Markets' Michael Hewson.
The pound softened further against the dollar, having dropped below USD1.20 as sterling's recent rally lost steam following cautious words from Bank of England Governor Andrew Bailey.
In a speech on Wednesday, Bailey said "nothing is decided" as far as interest rates go, and markets shouldn't assume more interest rate hikes are ahead.
Sterling was quoted at USD1.1987 early Thursday, slightly lower than USD1.1994 at the London equities close on Wednesday.
The day could be consequential for the euro, with a eurozone inflation reading due in at 1000 GMT.
Recent data from France, Spain and Germany have shown an upward trend to inflation, prompting fears of further hawkishness from the European Central Bank.
The euro traded at USD1.0640, down from USD1.0663. Against the yen, the dollar was quoted at JPY136.64, up versus JPY136.15.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average ending marginally higher, the S&P 500 up 0.5% and the Nasdaq Composite up 0.7%.
Late Wednesday, GSK said a US Food & Drug Administration committee voted unanimously to support the effectiveness of its respiratory syncytial virus vaccine, with the majority also supporting its safety.
It now expects a decision on US approval by May 3. GSK said the vaccine could potentially be the first approved for older adults.
In Tokyo on Thursday, the Nikkei 225 index closed down 0.1%. The Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was down 0.9%. The S&P/ASX 200 in Sydney closed up 0.1%.
Gold was quoted at USD1,833.06 an ounce early Thursday in London, lower than USD1,838.50 on Wednesday. Brent oil was trading at USD84.30 a barrel, higher than USD83.78.
In Thursday's UK corporate calendar, there are full-year results from London Stock Exchange Group, ITV, Haleon and National Express.
In the economic calendar, the EU will publish unemployment and inflation data at 1000 GMT. The US will publish its weekly unemployment claims report at 1330 GMT.
By Elizabeth Winter, Alliance News senior markets reporter
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Glaxosmithkline (GSK)