(Alliance News) - Stocks in London are set to open lower on Thursday, after the US Federal Reserve left interest rates unmoved the day before and forecast just one potential cut this year.

IG says futures indicate the FTSE 100 to open down 25.9 points, 0.3%, at 8,189.58 on Thursday. The index of London large-caps closed up 67.67 points, 0.8%, at 8,215.48 on Wednesday.

In the US on Wednesday, Wall Street ended mixed with the Dow Jones Industrial Average down 0.1%, meanwhile the S&P 500 closed up 0.9% and the Nasdaq Composite up 1.5%.

The US Federal Reserve left interest rates unmoved on Wednesday, as expected, and the central bank signalled just one cut could be in the offing before the end of the year.

The central bank maintained the federal funds rate range at 5.25% to 5.50%.

The Fed added: "The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%."

"Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the committee's 2% inflation objective," the Fed said.

Focus was on the Fed's latest economic projections, which includes the dot-plot of median interest rate expectations.

The chart suggests only one cut could be forthcoming before the end of 2024. The previous projection suggested three.

The decision followed the Bureau of Labor Statistics reporting that the year-on-year US consumer price inflation rate cooled to 3.3% in May from 3.4% in April. According to FXStreet, markets were expecting the rate of inflation to be steady, however.

On a monthly basis, consumer prices were flat, easing from a 0.3% rise in April from March. Prices had been expected to register a 0.1% increase.

Sterling was quoted at USD1.2775 early Thursday, lower than USD1.2836 at the London equities close on Wednesday.

The euro traded at USD1.0803 early Thursday, lower than USD1.0848 late Wednesday. Against the yen, the dollar was quoted at JPY157.18, higher versus JPY155.77.

In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.2%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong was up 0.4%. The S&P/ASX 200 in Sydney closed up 0.5%.

Gold was quoted at USD2,310.30 an ounce early Thursday, lower than USD2,326.83 on Wednesday. Brent oil was trading at USD82.30 a barrel early Thursday, higher than USD82.07 late Wednesday.

Thursday's economic calendar has eurozone industrial production data at 1000 BST, before a US producer price index reading at 1330 BST.

The UK corporate diary has annual results from money transfer services provider Wise.

By Sophie Rose, Alliance News senior reporter

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