FTSE called up after New York's boost

(Alliance News) - Stocks in London are set to open higher on Wednesday, as markets continue to rebound from Monday's global sell-off.

IG says futures indicate the FTSE 100 to open up 100.51 points, 1.2%, at 8,127.20 on Wednesday. The index of London large-caps closed up 18.46 points, 0.2%, at 8,026.69 on Tuesday.

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

"Asia-Pacific markets bounced back impressively on Wednesday, catching a wave from Wall Street’s rally that ended a tense three-day losing streak. The market mood seems as changeable as the weather, with a dramatic shift sparked by a major rally in Japanese stocks on Tuesday," said SPI's Stephen Innes.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 2.8%. In China, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was up 1.9%. The S&P/ASX 200 in Sydney closed up 0.4%.

Sterling was quoted at USD1.2704 early Wednesday, lower than USD1.2711 at the London equities close on Tuesday. The euro traded at USD1.0911 early Wednesday, lower than USD1.0930 late Tuesday.

Against the yen, the dollar was quoted at JPY147.61, up versus JPY144.70.

The Bank of Japan's deputy governor said Wednesday that officials would stick to their ultra-loose monetary policies given market volatility, sparking a big drop in the yen, while stocks rose.

Equities saw wild swings through the morning, with the benchmark Nikkei index finishing the session more than two percent higher, having been as much in the red after the open.

The yen has appreciated sharply since Japan's central bank last week hiked interest rates for only the second time in 17 years – indicating plans for more if the economy performs as officials expect.

But in a speech on Wednesday morning, BoJ Deputy Governor Shinichi Uchida took a more dovish stance.

"I believe that the Bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile," he said.

In politics, Kamala Harris picked Tim Walz as her running mate Tuesday, opting for the Minnesota governor as the partner most likely to complement her in a historic – and bruising – bid for the White House.

Walz had been on a shortlist with a string of other Democratic figures seen as broadening Harris's appeal as she sprints into the contest against Donald Trump.

Aiming to make history as the first woman president, Harris – already a trailblazer as the first female and first Black and South Asian vice president – has little time before election day on November 5.

Gold was quoted at USD2,393.40 an ounce early Wednesday, higher than USD2,386.99 on Tuesday. Brent oil was trading at USD76.64 a barrel early Wednesday, higher than USD76.46 late Tuesday.

In Wednesday's corporate calendar, there's half-year numbers from Coca-Cola Europacific partners and Coca-Cola HBC, WPP, Glencore and Legal & General also release half-year results.

In the economic calendar on Wednesday there is German industrial production and UK house prices at 0700 BST.

By Sophie Rose, Alliance News senior reporter

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