Stocks called up ahead of ECB rate decision

(Alliance News) - Stocks in London are set to open higher on Thursday, ahead of an interest rate decision from the European Central Bank.

IG says futures indicate the FTSE 100 to open up 9.5 points, 0.1%, at 7,688.81 on Thursday. The index of London large-caps closed up 33.15 points, 0.4%, at 7,679.31 on Wednesday.

The FTSE 100 closed higher on Wednesday, following the release of the UK Chancellor Jeremy Hunt's budget.

A cut to national insurance, stamp duty relief as well as a freeze on fuel and alcohol duties were among the marquee tax measures that Hunt announced in his budget.

After his announcement, Hunt suggested more could be on the way, telling Sky News the budget was "absolutely not" the last throw of the dice before the election, expected to take place in the autumn.

The prospect of another "fiscal event" before the election may give hope to those Conservative backbenchers who wish the chancellor had gone further.

Sterling was quoted at USD1.2737 early Thursday, lower than USD1.2750 at the London equities close on Wednesday.

The euro traded at USD1.0902 early Thursday, lower than USD1.0908 late Wednesday. Against the yen, the dollar was quoted at JPY148.29, lower versus JPY149.36.

In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.6%.

The US Federal Reserve's progress in bringing down inflation is not yet certain, the chair of the country's central bank said on Wednesday.

"If the economy evolves broadly as expected, it will likely be appropriate to begin dialling back policy restraint at some point this year," Fed Chief Powell said in a statement.

"But the economic outlook is uncertain, and ongoing progress toward our two percent inflation objective is not assured," he added.

Powell's prepared remarks to lawmakers on the House Financial Services Committee kick off two days of hearings on Capitol Hill, in which he will likely be grilled about when the Fed will start cutting elevated interest rates.

In December, Fed policymakers pencilled in three rate cuts this year, but did not indicate the timing of those cuts.

The future monetary policy will also be eyed across the pond, in the Eurozone on Thursday.

The European Central Bank will release its latest interest rate decision at 1315 GMT.

The ECB is expected to leave rates on hold, but all eyes will be on clues for future policy decisions, as hope of an April rate cut dwindles.

In Asia on Thursday, the Nikkei 225 index in Tokyo was down 1.2%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was down 1.2%. The S&P/ASX 200 in Sydney closed up 0.4%.

Gold was quoted at USD2,153.77 an ounce early Thursday, higher than USD2,145.00 on Wednesday. The precious metal hit another record high on Wednesday.

Brent oil was trading at USD83.02 a barrel early Thursday, lower than USD83.78 late Wednesday.

In Thursday's corporate calendar, there is the latest US initial jobless claims data at 1330 GMT, after a Halifax UK house price index reading at 0700 GMT.

The local corporate calendar has annual results from insurers Admiral, Aviva and Beazley and Ladbrokes Coral owner Entain.

By Sophie Rose, Alliance News senior reporter

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