Stocks called up ahead of US inflation data

(Alliance News) - Stocks in London are set to open slightly higher on Thursday, with the focus on a key US inflation reading to come later in the day.

IG says futures indicate the FTSE 100 to open up 15.5 points, 0.2%, at 7,640.48 on Thursday. The index of London large-caps closed down 58.04 points, 0.8%, at 7,624.98 on Wednesday.

Eyes are firmly on a key US inflation reading on Thursday. According to FXStreet-cited consensus, the headline annual personal consumption expenditures inflation rate is to ease to 2.4% in January, from 2.6% in December. The core reading, the Fed's preferred inflationary gauge, is to ebb to 2.8% from 2.9%.

Sterling was quoted at USD1.2665 early Thursday, higher than USD1.2656 at the London equities close on Wednesday.

The euro traded at USD1.0837 early Thursday, higher than USD1.0835 late Wednesday. Against the yen, the dollar was quoted at JPY149.78, down versus JPY150.73.

Eyes now turn to a key US inflation reading on Thursday. According to FXStreet-cited consensus, the headline annual personal consumption expenditures inflation rate is to ease to 2.4% in January, from 2.6% in December. The core reading, the Fed's preferred inflationary gauge, is to ebb to 2.8% from 2.9%.

In the US on Wednesday, stocks closed lower. The Dow Jones lost 0.1%, S&P 500 lost 0.2%, and Nasdaq Composite lost 0.6%.

In Asia on Thursday, the Nikkei 225 index in Tokyo was up 0.1%.

In China, the Shanghai Composite was up 1.6%, while the Hang Seng index in Hong Kong was up 0.3%. The S&P/ASX 200 in Sydney closed up 0.5%.

Japan's industrial output last month slumped the most since the Covid-19 pandemic, government data showed, adding to the gloom for the world's number four economy after going into recession in late 2023.

Output at factories and mines in January was down 7.5% from the previous month – the largest month-on-month decline since May 2020, when Covid brought global economies to a standstill.

Taro Saito at the NLI Research Institute said the "double effect" of the earthquake and auto scandals meant "production dropped sharply, not only in the auto industry but in a range of sectors".

Gold was quoted at USD2,036.66 an ounce early Thursday, higher than USD2,033.68 on Wednesday.

Brent oil was trading at USD82.12 a barrel early Thursday, higher than USD81.78 late Wednesday.

Thursday's economic calendar has the US PCE index reading at 1330 GMT. Before that, there is the latest UK Nationwide house price index at 0700 GMT. There is an inflation reading from Germany at 1300 GMT.

In the local corporate calendar, there are annual results from London Stock Exchange Group, British Airways owner International Consolidated Airlines Group and property investor Hammerson.

By Sophie Rose, Alliance News senior reporter

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