(Alliance News) - Stocks in London are set to open lower on Monday, while the pound continues to sit above the USD1.26 mark, with focus turning to a key US inflationary reading later this week.
IG says futures indicate the FTSE 100 to open 26.7 points lower, 0.4%, at 7,461.50 on Monday. The index of London large-caps closed up 4.62 points, 0.1%, at 7,488.20 on Friday, though lost 0.2% over the course of last week.
However, it has registered a gain of 2.3% so far in November.
In Asia on Monday, stocks were lower. The Nikkei 225 index in Tokyo fell 0.5%, while the Shanghai Composite in China was 0.3% lower in late trade. The Hang Seng Index in Hong Kong was also 0.3% lower, while Sydney's S&P/ASX 200 lost 0.8%.
"It's also shaping up to be the worst month for the US dollar since November last year in a sign that more declines could be on the way, as markets bet that the Fed is done on the rate hike front. If this trend continues and there's little reason to suppose it won't we could see a similar trend to last year play out when it comes to the greenback," CMC Markets analyst Michael Hewson commented.
The pound edged up to USD1.2613 early Monday, from USD1.2605 late Friday. The euro climbed to USD1.0950 from USD1.0935. Versus the yen, the dollar faded to JPY148.95 from JPY149.59.
Bannockburn Global Forex analyst Marc Chandler commented: "The dollar fell against all the G10 currencies last week. The dollar-bloc currencies, sterling, and the Scandis led the move, appreciating by about 0.55%-1.40% against the US dollar. The dollar bloc and sterling recorded new highs for the month ahead of the weekend. Against the others, the dollar spent most of last week consolidating after its recent losses were extended at the start of the week. Still, our review of the technical condition warns that the US dollar's pullback appears to be entering its final stages, with retracement targets being met and momentum indicators stretched.
"In terms of high-frequency economic data, there are a few highlights in the week ahead. The US CPI suggests the November [personal consumption expenditures] deflator will slow after being stuck at 3.4% since July. The eurozone's preliminary November CPI may edge lower to 2.7%, down from 10.0% in November 2022, though this might be a bottom for a couple of months. China's PMI may find some traction from the rash of measures recently announced to support the economy and property market. The Fed's Beige Book is due Wednesday, but it is unlikely to change ideas that central bank is on hold."
The week's economic calendar gets off to a slow start on Monday, with new home sales data from the US to come at 1500 GMT, though as the week progresses, focus will be on inflation readings. There is a US personal consumption expenditures reading and eurozone inflation data on Thursday. There is a US gross domestic product reading on Wednesday.
An ounce of gold traded at USD2,010.12 early Monday in London, up from USD1,999.98 late Friday. Gold has been boosted by the weaker dollar. A barrel of Brent oil fetched USD79.89, down from USD81.47.
Oil markets will be in focus with an Opec+ meeting of producing nations to come on Thursday.
The North Sea benchmark found some footing on Friday, after dropping following the unexplained postponement of the Opec+ meeting. The key ministerial gathering of the oil-producing alliance was pushed back from Sunday. Brent traded as low as USD76.57 last week.
Stocks in New York ended mixed during Friday's abbreviated session. The Dow Jones Industrial Average rose 0.3%, the S&P 500 edged up 0.1%, though the Nasdaq Composite fell 0.1%.
In Monday's UK corporate calendar, property portal Rightmove will publish a trading statement.
By Eric Cunha, Alliance News news editor
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