(Alliance News) - Stocks in London are set to open up slightly on Wednesday, ahead of a trio of interest rate decisions over the next two days, as well as the UK gross domestic product reading this morning.
IG says futures indicate the FTSE 100 to open up 4.2 points, 0.1%, at 7,552.20 on Wednesday. The index of London large-caps closed down just 2.12 points at 7,542.77 on Tuesday.
In the US on Tuesday, Wall Street ended higher, with both the Dow Jones Industrial Average and the S&P 500 up 0.5% and the Nasdaq Composite up 0.7%.
On Wednesday, investors will be eyeing this evening's interest rate decision from the US Federal Reserve.
The latest interest rate decision will be announced at 1900 GMT and a press conference with Fed Chair Jerome Powell follows half an hour later.
For now, the market sees roughly a 98% chance the Fed maintains rates at the 5.25% to 5.50% range on Wednesday, according to the CME FedWatch Tool.
Expectations were reinforced after the latest US inflation data landed in line with expectations on Tuesday. According to the Bureau of Labor Statistics, the nation's yearly inflation rate faded to 3.1% in November, in line with consensus, from 3.2% in October.
The European Central Bank and Bank of England will then take turns to announce their own interest rates on Thursday.
Elsewhere on Wednesday, the economic calendar has the UK gross domestic product reading at 0700 GMT and a eurozone industrial production reading follows at 1000 GMT.
Sterling was quoted at USD1.2547 early Wednesday, slightly lower than USD1.2549 at the London equities close on Tuesday.
The euro traded at USD1.0782 early Wednesday, lower than USDD1.0789 late Tuesday. Against the yen, the dollar was quoted at JPY145.81, up versus JPY145.60.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.3%. In China, the Shanghai Composite was down 0.8%, while the Hang Seng index in Hong Kong was down 1.0%. The S&P/ASX 200 in Sydney closed up 0.3%.
Gold was quoted at USD1,974.90 an ounce early Wednesday, lower than USD1,982.30 on Tuesday. Brent oil was trading at USD72.76 a barrel early Wednesday, lower than USD73.61 late Tuesday.
Wednesday's local corporate calendar has half-year results from defence and security technology firm Cohort.
By Sophie Rose, Alliance News senior reporter
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