Stocks called up; UK shop price inflation cools

(Alliance News) - Stocks in London are set to open higher on Tuesday, after data showed that UK shop price inflation cooled in January.

IG says futures indicate the FTSE 100 to open up 44.1 points, 0.6%, at 7,676.84 on Tuesday. The index of London large-caps closed down 2.35 points at 7,632.74 on Monday.

The economic calendar for this week has the US Federal Reserve announcing its latest interest rate decision on Wednesday at 1900 GMT, followed by the Bank of England on Thursday at 1200 GMT. Both central banks are expected to keep rates on hold.

Before then, investors will be digesting news that shop price inflation in the UK fell in January to its lowest rate since May 2022 as retailers offered heavy discounts to entice customers.

January's shop prices eased to 2.9% higher than a year ago, down from 4.3% in December and below the three-month average of 3.9%, according to the British Retail Consortium-NielsenIQ Shop Price Index.

Inflation on non-food products fell to 1.3% in January, down from 3.1% in December – the lowest rate since February 2022.

Food inflation also slowed, to 6.1% in January from December's 6.7%, the ninth consecutive fall and the lowest rate since June 2022.

The BRC said the easing is "good news for the morning brew" as the price of tea and milk fell, while alcohol remained more expensive on the back of increased duties.

Sterling was quoted at USD1.2705 early Tuesday, higher than USD1.2675 at the London equities close on Monday.

The euro traded at USD1.0822 early Tuesday, higher than USD1.0802 late Monday. Against the yen, the dollar was quoted at JPY147.29, down versus JPY147.72.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.1%

In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.1%. In China, the Shanghai Composite was down 1.4%, while the Hang Seng index in Hong Kong was down 1.9%. The S&P/ASX 200 in Sydney closed up 0.3%.

Gold was quoted at USD2,035.22 an ounce early Tuesday, higher than USD2,026.77 on Monday. Brent oil was trading at USD82.20 a barrel early Tuesday, higher than USD82.01 late Monday.

In Tuesday's UK corporate calendar, Diageo posts its half-year results.

In the economic calendar on Tuesday, there are gross domestic product readings from the eurozone and Germany.

On Thursday, there is inflation data from the eurozone. Across the pond, in the US, there are nonfarm payrolls out on Friday.

By Sophie Rose, Alliance News senior reporter

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