London opens higher after talk of US interest rate cuts

London opens higher after talk of US interest rate cuts
London opens higher after talk of US interest rate cuts

(Corrects figures for FTSE 100.)

(Alliance News) – London stocks are set to open higher on Wednesday after US Federal Reserve Chairman Jerome Powell said the US central bank had made “quite a bit of progress” in tackling persistent inflation.

Eyes are also on Thursday’s UK general election, which is expected to see Labour gain ground.

IG said futures indicated the FTSE 100 was set to open up 29.6 points, or 0.4%, at 8,150.80 on Wednesday. London’s large-cap index closed down 45.56 points, or 0.6%, at 8,121.20 on Tuesday.

In the United States, Wall Street ended higher, with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.6% and the Nasdaq Composite up 0.8%.

The U.S. Federal Reserve has made “quite a bit of progress” in tackling rising prices and could hit its inflation target as early as next year, Fed Chairman Jerome Powell said.

“We have made significant progress in bringing inflation back to our target as the labor market has remained strong and growth has continued,” Powell said at an event in Sintra, Portugal, which was streamed online.

He added that it was possible the Fed could reach its 2% target “perhaps late next year” or in 2026. “The main thing is that we make real progress,” he said.

In London, there is just one day left before Britons head to polling stations across the country.

Britain’s Labour Party is 99% “certain” to win more seats in Thursday’s general election than it did in its landslide victory in 1997, according to a new poll.

The centre-left opposition party, which has been out of power since 2010, is expected to win 484 of the 650 seats, an unprecedented victory in modern British history, according to pollster Survation.

Meanwhile, the ruling right-wing Conservatives and the centrist Liberal Democrats are in a tight race to come in far behind and form the country’s official opposition, the institute added.

The pound was trading at $1.2681 early Wednesday, up from $1.2678 at the close of trading in London on Tuesday.

The euro was trading at $1.0738 early Wednesday, higher than $1.0735 late Tuesday. Against the yen, the dollar was trading at 161.78 yen, up from 161.54 yen. [plushautque10735USDtardmardiFaceauyenledollarestcotéà16178yensenhausseparrapportà16154yens

In Asia, the Nikkei 225 index in Tokyo was up 1.3%. In China, the Shanghai Composite index was down 0.4%, while the Hang Seng index in Hong Kong was up 1.1%. The S&P/ASX 200 index in Sydney closed up 0.2%.

Gold was trading at $2,334.90 an ounce early Wednesday, higher than Tuesday’s $2,327.03.

Brent crude was trading at $86.65 a barrel early Wednesday, down from $86.99 late Tuesday.

On Wednesday’s corporate calendar, there is a trading statement from Topps Tiles, as well as annual results from ActiveOps and Baltic Classifieds Group.

On Wednesday’s economic calendar, there is a series of PMI data.

There are also initial jobless claims in the United States, as financial markets prepare to close on Thursday 4th, Independence Day.

By Sophie Rose, senior journalist at Alliance News

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Copyright 2024 Alliance News Ltd. All rights reserved.

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