(Alliance News) - Stocks in London are set to open lower on Thursday, ahead of the latest European Central Bank decision.
IG says futures indicate the FTSE 100 to open down 42.7 points, 0.6%, at 7,371.64 on Thursday. The index of London large-caps closed up 24.64 points, or 0.3%, at 7,414.34 on Wednesday.
The economic calendar has the latest interest rate decision from the European Central Bank. It is expected to decide against a rate hike.
Its interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility stand at 4.50%, 4.75% and 4.00%, respectively. The ECB has speedily enacted 450 basis points of hikes. Its first in the current cycle was in July of last year, prior to that, rates had been unmoved since 2019.
The ECB announces its latest rate decision at 1315 BST on Thursday. A press conference with President Christine Lagarde follows half an hour later.
Ebury analyst Matthew Ryan commented: "We expect the ECB to deliver a 'dovish hold' on Thursday, whereby it keeps rates unchanged and warns that mounting risks to the outlook warrants a greater degree of caution."
Meanwhile, the Bank of Canada held interest rates steady on Wednesday amid "growing evidence" that its past interest rate increases are "dampening economic activity and relieving price pressures."
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P 500 down 1.4% and the tech-heavy Nasdaq Composite down 2.4%.
It was the Nasdaq's worst day since February, while the S&P hit its lowest level since June.
The tech sell-off was led by Google parent Alphabet, as its shares plunged 9.5% after disappointing cloud sales offset an earnings and revenue beat.
Danni Hewson, head of financial analysis at AJ Bell, said: "The problem with just seven 'magnificent' stocks dominating global markets is that when one underperforms there are consequences."
A US gross domestic product print will also be in focus later in the day.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 2.1%. In China, the Shanghai Composite was down slightly, while the Hang Seng index in Hong Kong was down 0.6%. The S&P/ASX 200 in Sydney closed down 0.6%.
Sterling was quoted at USD1.2084 early Thursday, lower than USD1.2143 at the London equities close on Wednesday. The euro traded at USD1.0547, lower than USD1.0590. Against the yen, the dollar was quoted at JPY150.45, up versus JPY149.93.
Gold was quoted at USD1,986.55 an ounce early Thursday, higher than USD1,982.33 on Wednesday. Brent oil was trading at USD88.42 a barrel early Thursday, higher than USD87.71 late Wednesday.
In Thursday's UK corporate calendar, there are updates from WPP and Unilever.
By Sophie Rose, Alliance News reporter
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