(Alliance News) - Stocks in London are set to open slightly higher on Thursday, ahead of a key interest rate decision from the Bank of England.
IG says futures indicate the FTSE 100 to open called up 10.2 points, 0.1%, at 7,571.83 on Thursday. The index of London large-caps closed down 104.64 points, 1.4%, at 7,561.63 on Wednesday.
The BoE announces its interest rate decision at 1200 BST on Thursday. A press conference with Governor Andrew Bailey follows at 1230 GMT. Market consensus is predicting a 25 basis point hike to interest rates, according to FXStreet.
At the last meeting in June, the BoE raised UK interest rates by 50 basis points, taking the benchmark bank rate to 5.00% from 4.50% previously.
It had dug deep into its arsenal with a half-point hike after a hotter-than-expected May UK inflation reading.
At this meeting, however, the bank will be considering June's cooler-than-expected inflation print. According to data from the Office for National Statistics last month, consumer prices rose by 7.9% in June, easing from an 8.7% jump in May.
Sterling was quoted at USD1.2701 early Thursday, lower than USD1.2707 at the London equities close on Wednesday. The euro traded at USD1.0928, lower than USD1.0940. Against the yen, the dollar was quoted at JPY143, up versus JPY143.32.
Overnight, there has been some PMI data.
China's services sector continued to see a strong expansion in July, according to survey data.
The Caixin services purchasing managers' index rose to 54.1 points in July from June's five-month low of 53.9. Rising further above the 50-point no-change mark, it shows the pace of growth accelerated slightly over the month. The composite PMI - which measures the services and manufacturing sectors - edged down to 51.9 from 52.5.
Growth in Japan's service sector slowed in July, survey data showed. The au Jibun Bank services PMI eased to 53.8 in July from 54.0.
The composite PMI rose to 52.2 from 52.1.
The Australian sector fell into contraction territory in July, survey data suggested. The Judo Bank services PMI fell past the 50-point no-change mark to 47.9 in July, signalling a downturn in the sector. June's reading had been close to neutral at 50.3. The composite PMI fell to 48.2 from 50.1.
Thursday's economic calendar has more PMI readings, including the eurozone at 0900 BST, the UK at 0930 and the US at 1445. Other than the PMI readings, the latest US jobless claims reading is reported at 1330 BST.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 1.2%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was up 0.3%. The S&P/ASX 200 in Sydney was down 0.7%.
In the US on Wednesday, equities in New York slumped after the downgrade to US debt. The Dow Jones Industrial Average down 1.0%, the S&P 500 down 1.4% and the Nasdaq Composite down 2.2%.
Gold was quoted at USD1,933.98 an ounce early Thursday, edging lower than USD1,934.77 on Wednesday. Brent oil was trading at USD83.27 a barrel, higher than USD83.09.
The local corporate diary has a trading statement from retailer Next and half-year results from FTSE Russell owner London Stock Exchange Group.
By Sophie Rose, Alliance News reporter
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