(Alliance News) - Stocks in London are set to open flat on Tuesday, as investors await central bank decisions and fret about the rebound in oil prices.
IG says futures indicate the FTSE 100 to open up 2.4 points at 7,655.34 on Tuesday. The index of London large-caps closed down 58.44 points, 0.8%, at 7,652.94 on Monday.
"Everyone is worried about oil prices, and what they will mean for inflation figures heading into the end of the year. While the recent pickup in US price growth is unlikely to shift the Fed into hiking on Wednesday, another hike before year-end seems more plausible," said IG's Chris Beauchamp.
Brent oil was trading at USD95.01 a barrel early Tuesday, higher than USD94.78 late Monday.
The focal points of this week are interest rate decisions from the US Federal Reserve on Wednesday and the Bank of England on Thursday, with the Bank of Japan to follow on Friday.
The US central bank is widely expected to leave interest rates unchanged after raising them to their highest level in 22 years in July.
"This week, the US policymakers will certainly opt for a 'hawkish pause'. The Fed will likely revise its growth expectations significantly higher on the back of resilient consumer spending and solid growth," said Swissquote Bank's Ipek Ozkardeskaya.
Sterling was quoted at USD1.2376 early Tuesday, lower than USD1.2393 at the London equities close on Monday. The euro traded at USD1.0680, edging down from USD1.0684. Against the yen, the dollar was quoted at JPY147.79, up a touch from JPY147.70.
In the US on Monday stocks on Wall Street made little headway, with the Dow Jones Industrial Average and the Nasdaq closing flat and the S&P 500 edging up 0.1%.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 1.0%, with markets re-opening following a public holiday on Monday. In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was down 0.2%. The S&P/ASX 200 in Sydney was down 0.5%.
Gold was quoted at USD1,931.27 an ounce early Tuesday, higher than USD1,927.22 on Monday.
In Tuesday's UK corporate calendar, there is a trading statement scheduled from Ocado. There are full year results from Hargreaves Lansdown, as well as half year results from Kingfisher.
On Tuesday, the Federal Open Market Committee meeting will begin. There is also a CPI reading from the EU.
By Elizabeth Winter, Alliance News senior markets reporter
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