(Alliance News) - Stocks in London are set to open up slightly on Thursday, after data showed that Chinese consumer prices registered their steepest fall since 2009.

IG says futures indicate the FTSE 100 to open up 6.8 points, 0.1%, at 7,636.3 on Thursday. The index of London large-caps closed down 52.26 points, 0.7%, at 7,628.75 on Wednesday.

Sterling was quoted at USD1.2633 early Thursday, higher than USD1.2623 at the London equities close on Wednesday. The euro traded at USD1.0785 early Thursday, higher than USD1.0765 late Wednesday. Against the yen, the dollar was quoted at JPY148.63, higher versus JPY148.01.

In China, the Shanghai Composite was up 0.9%, while the Hang Seng index in Hong Kong was down 1.4%.

Chinese consumer prices fell in January at their quickest rate in more than 14 years, data showed Thursday, as the country's leaders struggle to revive buying sentiment in the world's second-biggest economy.

The reading will likely add to calls for officials to do more to breathe life into the economy, with central bank interest rate cuts and measures to boost lending having little impact so far.

The 0.8% drop in the consumer price index, revealed by the National Bureau of Statistics, marked the fourth straight month of deflation and was much bigger than the 0.5% fall forecast in a survey by Bloomberg News.

The reading was the worst since the second half of 2009, during the global financial crisis.

"In plain English, it means that the Chinese efforts to boost growth and bring inflation back are not working according to the plan. Money poured into the Chinese system doesn't circulate in a way to stimulate economy – blame people who lost confidence – and the radical measures that the government has put in place to prop up equity valuations hardly help China's battered stock markets to get back on their feet," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

In Asia on Thursday, the Nikkei 225 index in Tokyo was up 2.1%. The S&P/ASX 200 in Sydney closed up 0.3%.

In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.0%.

Gold was quoted at USD2,033.44 an ounce early Thursday, lower than USD2,039.13 on Wednesday.

Brent oil was trading at USD79.59 a barrel early Thursday, higher than USD78.98 late Wednesday.

Thursday's economic calendar has a US initial jobless claims reading at 1330 GMT.

The local corporate calendar has annual results from pharmaceutical firm AstraZeneca and consumer goods company Unilever. Utility SSE and contract caterer Compass release trading statements, while Miner Anglo American posts a production report.

By Sophie Rose, Alliance News senior reporter

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