(Alliance News) - Stocks in London were called slightly higher on Wednesday, on a busy day for economic indicators and central bank tea-leaf reading before the US shuts for a holiday.

At 1900 GMT on Wednesday, the US Federal Open Meeting Committee will publish the minutes of its most recent policy-making meeting. Investors will be looking for any clues about the central bank's decision-making process for future interest rate hikes.

"Recent commentary from some Fed members has leant into the idea that rate hikes from hereon in are likely to be of a lesser magnitude, with this week’s publication of the Fed minutes likely to shed some light into how many FOMC members are becoming concerned about policy lags and the impacts of such lags on the US economy," said CMC Markets' analyst Michael Hewson.

There will also be US initial jobless claims a day early because of the Thanksgiving Day holiday on Thursday. Stock trading will be closed on Thursday and have a half-day session on Friday.

FXStreet-cited consensus expects the number of US workers filing for first-time unemployment benefits to increase to 224,000 in the week that ended November 18 from 222,000 a week earlier.

Before the FOMC minutes, there are flash purchasing managers' index readings from the EU, the UK, and Germany on Wednesday morning, with a US PMI to follow later in the day.

The UK S&P Global/CIPS manufacturing PMI is expected to show a further contraction in the sector in November, with a reading of 45.8 points, according to FXStreet-cited consensus. This compares with 46.2 in October.

PMI readings from the EU, Germany, and the US similarly are expected to show weakening in the private sector.

In early corporate news, United Utilities increased interim dividends but guided for lower annual revenue, while Johnson Matthey swung to an interim profit and De La Rue swung to an interim loss.

Here is what you need to know ahead of the London market open:

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MARKETS

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FTSE 100: called up 15.5 points, 0.2%, at 7,468.34

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Hang Seng: up 0.6% at 17,534.19

Nikkei 225: Tokyo market closed for Labor Thanksgiving Day

S&P/ASX 200: closed up 0.7% at 4,089.70

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DJIA: closed up 397.82 points, or 1.2%, at 34,098.10

S&P 500: closed up 53.64 points, or 1.4%, at 4,003.58

Nasdaq Composite: closed up 149.90 points, or 1.4%, at 11,174.41

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EUR: higher at USD1.0334 (USD1.0275)

GBP: higher at USD1.1892 (USD1.1871)

USD: soft at JPY141.28 (JPY141.35)

Gold: lower at USD1,739.54 per ounce (USD1,741.10)

Oil (Brent): lower at USD88.36 a barrel (USD88.86)

(changes since previous London equities close)

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ECONOMICS

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Wednesday's key economic events still to come:

09:30 CET Germany flash PMI

10:00 CET EU flash PMI

09:30 GMT UK flash PMI

19:00 GMT UK BoE Chief Economist Huw Pill speaks 

14:00 EST US Federal Open Market Committee meeting minutes published

07:00 EST US MBA weekly mortgage applications survey

08:30 EST US initial jobless claims

09:45 EST US flash manufacturing PMI

09:45 EST US flash services PMI

10:00 EST US University of Michigan survey of consumers

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UK Prime Minister Rishi Sunak is set to face opposition Labour leader Keir Starmer in Prime Minister's Questions in Westminster on Wednesday as he struggles with a Tory rebellion over policy, MP departures and lingering questions over his judgement. A month after taking office vowing "stability and unity", trouble is brewing for the UK PM on multiple fronts. He reportedly pulled a vote due next Monday on government plans to build 300,000 homes a year as dozens of Conservative MPs threatened a rebellion, dealing a blow to his authority. Meanwhile, two senior Tories on Tuesday announced they would stand down as MPs at the next general election. Former work and pensions secretary Chloe Smith said she was quitting Parliament, followed hours later by William Wragg, who chairs the Public Administration & Constitutions Affairs select committee.

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Ireland's fiscal watchdog has said that the "relative" strength of digital and pharmaceutical companies will support the Irish economy, despite inflation. Spending could also be supported by "exceptional" levels of savings built up during the pandemic and by an increases in wages across some sectors. The Irish Fiscal Advisory Council has indicated that recent job losses at Twitter and Facebook's parent company Meta Platforms "weaken" prospects for the Irish economy.

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BROKER RATING CHANGES

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Deutsche Bank research raises Sage to 'hold' (sell) - price target 800 (590) pence

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RBC initiates Bushveld Minerals with 'sector perform', target 600 pence

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Bernstein raises Glencore to 'outperform' (market-perform) - price target 770 (560) pence

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COMPANIES - FTSE 100

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United Utilities reported strong profit growth in the six months to September 30, with pretax profit of GBP426.3 million, compared to GBP212.7 million a year before. However, this mostly reflects a GBP255 million decrease in reported net finance expense. Revenue edged down to GBP919.3 million from GBP932.3 million. The water works increased its interim dividend to 15.17 pence, compared to 14.50p. Looking ahead, United Utilities expects annual revenue to be around 1% lower than a year before. "While the current challenging macro environment is impacting financial performance, the economic performance of our business remains robust, supported by our strong balance sheet, effective hedging policies and tight cost control," United Utilities said.

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Gambling firm Entain said it has completed its EUR920 million acquisition of Croatian gaming and sportsbook operator SuperSport Group. SuperSport holds around 50% market share in the fully-regulated Croatian market. "Its unrivalled brand and online focused sports betting, as well as iGaming offer is underpinned by its proprietary technology solution," Entain said.

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COMPANIES - FTSE 250

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Pets at Home said revenue grew to GBP727.2 million in the 28 weeks to October 13, compared with GBP677.6 million in the comparable period of the previous year. Pretax profit fell to GBP53.4 million from GBP65.7 million, due to higher costs of freight and energy, as well as higher investment. The pet supplies retailer said there was no change to annual guidance, and continues to expect underlying pretax profit to be in line with analyst consensus of GBP131 million. Interim dividend is lifted 4.7% to 4.5p.

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Johnson Matthey said revenue in the half year to September 30 fell 14% year-on-year to GBP7.33 billion from GBP8.50 billion. However, the chemicals and sustainable technologies company swung to a pretax profit from continuing operations of GBP188 million from a loss of GBP4 million. Johnson Matthey kept its interim dividend at 22p per share. It said it expects its annual underlying operating profit to be in line with a consensus range of GBP458 million to GBP516 million.

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OTHER COMPANIES

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De La Rue reported a "challenging" first half ending September 30, as revenue fell 8.3% to GBP164.3 million from GBP179.2 million a year before. This was mostly led by a decline in Currency revenue. The banknote printer swung to a pretax loss of GBP15.9 million from a profit of GBP10.9 million a year before. It now expects full-year adjusted operating profit between GBP30 million and GBP33 million, which is below GBP36 million analyst consensus. The firm also laid out its plans to continue growth in Authentication and achieve "solid returns" on investments in Currency. "We are reiterating that as part of this, next financial year, the company will generate free cash flow and see an improved [earnings before interest, tax, depreciation and amortisation]," it said.

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By Elizabeth Winter; elizabethwinter@alliancenews.com

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