(Alliance News) - Stocks in London are set to open slightly higher on Wednesday, ahead of the latest interest rate decision from the US Federal Reserve.
IG says futures indicate the FTSE 100 to open up 7.1 points, 0.1%, at 7,673.41 on Wednesday. The index of London large-caps closed up 33.57 points, 0.4%, at 7,666.31 on Tuesday.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.1% and the Nasdaq Composite up 0.8%.
On Wednesday, all eyes will be on the latest interest rate decision from the US. The Fed will announce its latest decision at 1900 GMT.
It is expected to leave the federal funds rate range unmoved at 5.25% to 5.50%. What happens next has markets divided, however.
According to the CME FedWatch Tool, there is a 48% chance the central bank cuts rates in the following meeting in March. That probability stood at 73% a month ago.
Focus on Wednesday will be on whether the Fed Chair Jerome Powell offers any clues on the interest rate outlook.
Eyes will then swiftly turn onto the Bank of England, which will announce its latest interest rate decision at 1200 GMT on Thursday. Like the Fed, the BoE is expected to keep rates unchanged.
In China, the Shanghai Composite was down 0.8%, while the Hang Seng index in Hong Kong was down 1.3%.
China's factory activity contracted in January for the fourth consecutive month, official data showed Wednesday, as Beijing struggles to find ways to jumpstart its sluggish economy.
The purchasing managers' index – a key measure of factory output – came in at 49.2 points in January, according to China's National Bureau of Statistics.
The figure was a slight improvement from the 49 recorded in December, but still below the 50 mark separating expansion from contraction.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.6%. The S&P/ASX 200 in Sydney closed up 1.1%.
Sterling was quoted at USD1.2673 early Wednesday, higher than USD1.2665 at the London equities close on Tuesday.
The euro traded at USD1.0816 early Wednesday, lower than USD1.0839 late Tuesday. Against the yen, the dollar was quoted at JPY147.82, up versus JPY147.80.
Gold was quoted at USD2,034.22 an ounce early Wednesday, higher than USD2,033.15 on Tuesday. Brent oil was trading at USD82.25 a barrel early Wednesday, lower than USD82.32 late Tuesday.
In Wednesday's UK corporate calendar, GSK posts its full-year results.
The economic calendar has consumer price inflation data out for Germany.
By Sophie Rose, Alliance News senior reporter
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