(Alliance News) - Stocks in London are set to open higher on Friday, following some positive economic data from China.
IG says futures indicate the FTSE 100 to open 18.6 points higher at 8,163.57. The index of London large-caps closed down 21.91 points, 0.3%, at 8,144.97 on Thursday.
Consumer price inflation in China was stronger than expected in July, hitting a five-month high, data showed Friday, providing some much-needed positive news on the world's number-two economy, as with officials in Beijing try to boost consumer buying.
The 0.5% annual increase in the consumer price index accelerated sharply from 0.2% in June and marked the sixth straight month of rising prices, according to the National Bureau of Statistics. China endured a period of deflation between October to January, when sliding prices of goods and services heightened worries of an economic slowdown.
July's reading – which beat market forecasts in a survey by Bloomberg – represents the fastest rise in consumer prices since February, when the index increased 0.7% year-on-year.
The dollar was lower early Friday.
Sterling was quoted at USD1.2754, up from USD1.2720 at the London equities close on Thursday. The euro traded at USD1.0921, higher than USD1.0907 late Thursday. Against the yen, the dollar was quoted at JPY147.04, down from JPY147.17.
Donald Trump on Thursday voiced frustration at the independence of the Federal Reserve and suggested that the US president should have "at least a say" over the course of monetary policy.
Trump, who is running against Kamala Harris in November's presidential election, has frequently criticized the actions of Fed Chair Jerome Powell – whom he nominated to lead the independent US central bank – and suggested he may not look to renominate him once his current term expires in 2026.
The Fed has "sort of gotten it wrong a lot," Trump told reporters Thursday during a press conference in Palm Beach, Florida. "I feel the president should have at least a say" about monetary policy, he said, adding he had "fought him very hard" on some occasions – an apparent reference to Powell.
Meanwhile, the ABC television network said both Trump and Harris have agreed to a September 10 presidential debate. The announcement on Thursday came shortly after Trump told a news conference that he had proposed three presidential debates with three television networks, saying he agreed on certain dates in September.
In the US on Thursday, Wall Street ended higher. The Dow Jones Industrial Average closed up 683.04 points, 1.8%, at 39,446.49. The S&P 500 closed up 2.3% at 5,319.31, and the Nasdaq Composite closed up 2.9% at 16,660.02.
In Asia on Friday, the Nikkei 225 index in Tokyo was up 0.5%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 1.3%. The S&P/ASX 200 in Sydney closed up 1.4%.
Gold was quoted at USD2,418.50 an ounce early Friday, higher than USD2,415.11 late in London on Thursday.
Brent oil was trading at USD79.04 a barrel early Friday, up from USD78.92.
In Friday's corporate calendar, wealth management platform Hargreaves Lansdown releases full-year results, while house builder Bellway makes a trading statement.
In the economic calendar on Friday, there are consumer price inflation figures from Germany and Italy. Ireland will report on industrial production.
By Tom Waite, Alliance News editor
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