(Alliance News) - Stocks in London are set to open flat on Wednesday, as investors await vital US data.

IG says futures indicate the FTSE 100 to open up 4.2 points at 7,687.22 on Wednesday. The index of London large-caps closed down 1.28 points at 7,683.02 on Tuesday.

In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.3%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.4%.

"US stocks ended the day with little change, as investors remain grounded ahead of critical economic data, including the Federal Reserve preferred inflation gauge, which is expected to shed some light on the timing of the first Fed cut," commented Stephen Innes, managing partner at SPI Asset Management.

The main focus will be on the latest economic growth figures on Wednesday, with monthly personal consumption expenditures - which contains a key inflation metric - to follow on Thursday. The PCE reading is closely followed by the Federal Reserve when making decisions on interest rates.

In the meantime, investors will be reflecting on Tuesday's US data, which revealed a sharper-than-expected drop in consumer confidence, and disappointing orders for durable goods.

The weaker data came as Goldman Sachs Chief Executive Officer David Solomon said softer spending by consumers calls into question expectations that the US economy will avoid a recession.

"The world is set up for a soft landing," Solomon said at a UBS Group conference, reported by Bloomberg. "The market certainly perceives there's a very, very high delta to a soft landing. My own view is it's a little bit more uncertain than that".

Sterling was quoted at USD1.2659 early Wednesday, lower than USD1.2693 at the London equities close on Tuesday. The euro traded at USD1.0826, lower than USD1.0854. Against the yen, the dollar was quoted at JPY150.61, up versus JPY150.41.

Gold was quoted at USD2,030.57 an ounce early Wednesday, down slightly from USD2,033.79 on Tuesday.

Brent oil was trading at USD83.24 a barrel, higher than USD82.25.

Oil prices rose following reports that Opec+ will consider extending voluntary oil output cuts into the second quarter. Reuters cited three Opec+ sources, who said the extension of cuts would provide further support for the oil market, and the cuts could remain in place until the end of the year.

"Tuesday's increase in oil prices was further bolstered by an announcement from Russian officials regarding a six-month ban on gasoline exports starting March 1," noted SPI Asset Management's Innes.

In Asia on Wednesday, the Nikkei 225 index in Tokyo closed down 0.1%. In China, the Shanghai Composite was down 1.5%, while the Hang Seng index in Hong Kong was down 1.4%.

Focus was on the property sector, after a petition to wind up debt-hit Chinese developer Country Garden was filed in a Hong Kong court. Meanwhile, Hong Kong's finance minister announced the axing of all property transaction taxes in a bid to revive the finance hub's depressed housing market.

The S&P/ASX 200 in Sydney closed marginally lower.

Wednesday's economic diary has the US gross domestic product data at 1330 GMT. There is a eurozone consumer confidence reading at 1000 GMT.

The local corporate diary has full-year results from consumer goods and hygiene products maker Reckitt Benckiser and carmaker Aston Martin Lagonda.

By Elizabeth Winter, Alliance News deputy news editor

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