Stocks to close week lower on rate decisions

(Alliance News) - Stocks in London are set to open slightly lower on Friday, after a busy week of interest rate decisions.

IG says futures indicate the FTSE 100 to open down 3.9 points at 7,878.65 on Friday. The index of London large-caps closed up 145.17 points, 1.9%, at 7,882.55 on Thursday.

The week has been dominated by interest rate decisions.

To start the week off, the Bank of Japan on Tuesday ended its negative interest rate policy.

On Wednesday, the US Federal Reserve left interest rates unmoved, as expected, while its latest set of projections still suggest three cuts will come this year. The central bank's federal funds rate range was unchanged at 5.25%-5.50%.

After the Fed decision, on Thursday, the Swiss National Bank surprised with a 25 basis point cut to its policy rate.

The Bank of England left bank rate at 5.25% in the afternoon, but the vote split gave equities the confidence to push higher.

There was a marked shift in the voting pattern with eight members of the MPC voting to leave interest rates unchanged, with hawks Jonathan Haskel and Catherine Mann no longer recommending rates be increased.

Sterling was quoted at USD1.2627 early Friday, lower than USD1.2665 at the London equities close on Thursday.

The euro traded at USD1.0829 early Friday, lower than USD1.0859 late Thursday. Against the yen, the dollar was quoted at JPY151.46, down versus JPY151.69.

In Japan on Friday, the Nikkei 225 index in Tokyo was up 0.2%.

Japanese inflation accelerated to 2.8% in February, data showed Friday, staying above the BoJ's two-percent target meant to fight stagnation.

The year-on-year rise in prices excluding volatile fresh food was in line with market expectations and followed an increase of 2.0% in January.

In China, the Shanghai Composite was down 1.0%, while the Hang Seng index in Hong Kong was down 2.3%. The S&P/ASX 200 in Sydney closed down 0.2%.

In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.2%.

Gold was quoted at USD2,173.50 an ounce early Friday, lower than USD2,178.10 on Thursday.

Brent oil was trading at USD85.15 a barrel early Friday, lower than USD85.50 late Thursday.

Friday's local corporate calendar has half-year results from pub operator JD Wetherspoon and full-year results from savings and retirement business Phoenix Group Holdings.

The economic diary has a UK retail sales reading at 0700 GMT.

By Sophie Rose, Alliance News senior reporter

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