(Alliance News) - Stocks in London are set to open slightly higher on Friday, closing up a week of important monetary policy decisions, and ahead of a slew of economic data.
IG says futures indicate the FTSE 100 to open up 9.6 points, 0.1%, at 7,660.30 on Friday. The index of London large-caps closed up 100.54 points, 1.3%, at 7,648.98 on Thursday.
Stocks in London are called to open higher, after a week dominated by the final interest rate decisions of the year.
The US Federal Reserve, European Central Bank and Bank of England all chose to hold interest rates, but some central banks were more dovish than others.
Speaking at a press conference after the announcement, ECB President Lagarde said the bank "did not discuss rate cuts at all - no discussion, no debate on this issue".
In the UK, the outcome was split with six Monetary Policy Committee members, Governor Andrew Bailey included, favouring the hold. Three would have preferred rates to have been lifted by 25 basis points, namely Megan Greene, Jonathan Haskel and Catherine Mann.
The Fed surprised markets though. Bank rate expectations were "modestly revised" following the decision, with a cut in May expected.
Stock prices in New York nudged higher on Thursday, with euphoria from Federal Reserve's slight policy pivot spilling over to a new trading day. The Dow Jones Industrial Average closed up 0.4%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.2%.
Overnight, figures showed that UK consumer confidence has increased amid Christmas cheer in a small but much-needed boost for retailers.
GfK's long-running Consumer Confidence Index increased two points in December but remains firmly in negative territory at minus 22.
Expectations for the general economic situation over the next 12 months increased by one point to minus 25 but has risen to 28 points higher than a year ago.
Notably, confidence in personal finances – reflecting household financial optimism and control over budgets – has recovered from the depressed minus 29 of a year ago to minus 2.
"Despite the severe cost-of-living crisis still impacting most households, this slow but persistent movement towards positive territory for the personal finance measure looking ahead is an encouraging sign for the year to come," said Joe Staton, client strategy director at GfK.
Sterling was quoted at USD1.2759 early Friday, lower than USD1.2762 at the London equities close on Thursday. The euro traded at USD1.0984 early Friday, lower than USD1.0994 late Thursday. Against the yen, the dollar was quoted at JPY142.05, up versus JPY141.60.
On Friday investors will be eyeing a slew of PMI data. This includes the eurozone at 0900 GMT, the UK at 0930 GMT and the US at 1445 GMT.
In Asia on Friday, the Nikkei 225 index in Tokyo was up 0.9%. In China, the Shanghai Composite was down 0.5%, while the Hang Seng index in Hong Kong was up 2.0%. The S&P/ASX 200 in Sydney closed up 0.9%.
Gold was quoted at USD2,035.44 an ounce early Friday, lower than USD2,039.11 on Thursday. Brent oil was trading at USD76.79 a barrel early Friday, higher than USD76.70 late Thursday.
In Friday's corporate calendar, there are half-year results from online wine seller Naked Wines.
By Sophie Rose, Alliance News senior reporter
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