Stocks to edge up; UK house prices due

(Alliance News) - Stocks in London were set to open slightly higher on Friday, as investors reflect on an eventful year for global equities.

IG says futures indicate the FTSE 100 to open up 2.5 points at 7,725.24 on Friday, the last trading day of the year.

The index of London large-caps closed down 2.21 points at 7,722.74 on Thursday. It is on track to add just 2.2% in 2023.

The London Stock Exchange is open for a half-day on Friday, closing at 1230 GMT.

The dollar was mixed against major currencies during early exchanges in Europe.

Sterling was quoted at USD1.2766, higher than USD1.2741 at the London equities close on Thursday. The euro traded at USD1.1069, fading from USD1.1078. Against the yen, the dollar was quoted at JPY141.34, up versus JPY141.08.

Gold was priced at USD2,072.31 an ounce, lower than USD2,075.46 late Thursday.

In the US on Thursday, Wall Street saw a muted close, with the Dow Jones Industrial Average up 0.1% and the S&P 500 marginally higher, while the Nasdaq Composite edged into the red.

However, the Dow is up 14% so far in 2023, the S&P 500 up 25%, and the tech-heavy Nasdaq Composite up 45%.

Equities have trended higher since late October as the market has embraced moderating inflation and a strong labour market in the belief the US economy can avoid recession.

"2023 presented a tumultuous journey marked by economic and financial upheavals. However, robust growth in real spending played a crucial role in maintaining relatively tight labour market conditions, defying earlier predictions," said SPI Asset Management managing partner Stephen Innes.

The stock that stole the show in 2023 was chipmaker Nvidia, amid the explosion of interest in artificial intelligence. Its shares leapt from USD147 at the beginning of the year to USD495 by the end.

In Asia on Friday, the Nikkei 225 index in Tokyo closed down 0.5%, but jumped 30% over 2023.

Japanese companies outperformed during the year, as the country's central bank kept in place its ultra-loose monetary policy. Against a strong dollar, the yen depreciated, helping to make Japanese products more competitive, and attracting foreign investment.

It was a different story for Chinese stocks meanwhile, as investors grew skittish about the country's economic prospects after the initial optimism about its post-Covid reopening waned.

On Friday, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was up 0.1%. Over the year, the indices are down 4.6% and 15% respectively.

The S&P/ASX 200 in Sydney closed down 0.3%, rising 9.3% over the year.

Brent oil was trading at USD77.56 a barrel early Friday, higher than USD78.70 late Thursday.

In Friday's corporate calendar, there are annual results from Pantheon Resources. In the economic calendar, there's the Nationwide UK house price index due shortly.

By Elizabeth Winter, Alliance News deputy news editor

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