(Alliance News) - Stocks in London are set to open higher on Thursday, as optimism about US interest rate cuts in 2024 continues over the quiet post-Christmas trading period.

IG says futures indicate the FTSE 100 to open up 23.8 points, 0.3%, at 7,748.75 on Thursday. The index of London large-caps closed up 27.44 points, 0.4%, at 7,724.95 on Wednesday. It is up 2.3% in 2023 so far, as the year draws to a close.

Wall Street ended marginally in the green on Wednesday, with the Dow Jones Industrial Average rising 0.3%, the S&P 500 up 0.1% and the Nasdaq Composite up 0.2%.

"In a session marked by signs of year-end investor fatigue, US stocks managed to eke out slight gains on Wednesday, with subdued trading and a lack of significant market-moving news," noted SPI Asset Management's Stephen Innes.

A federal court handed Apple a victory by suspending a ban on the US sale of its latest Watch models in a feud over patents with health company Masimo. Shares in Apple closed up 0.1% in New York.

The ban on certain Apple smartwatch models came into effect on Tuesday, after the Joe Biden administration opted not to veto a ruling on the patent infringements. But the federal court said the ban order would not take effect pending the appeals process.

Meanwhile, oil prices retreated slightly as shipping disruption in the Red Sea eased. Brent crude fetched USD79.80 a barrel early Thursday, lower than USD80.15 late Wednesday.

French shipping company CMA-CGM has resumed some transit through the Red Sea, days after Danish group Maersk announced it would return as a US-led naval coalition is now policing the maritime route against Yemeni rebel attacks. The attacks prompted shipping companies to reroute vessels around the southern tip of Africa earlier this month – a longer and more expensive trip than the Red Sea route that links up with the Suez Canal.

The dollar was soft against the pound and yen, but edged up against the euro.

Sterling was quoted at USD1.2809 early Thursday, higher than USD1.2797 at the London equities close on Wednesday. Against the yen, the dollar was quoted at JPY141.18, down versus JPY141.88. However, the euro traded at USD1.1106, lower than USD1.1115.

Gold was quoted at USD2,085.14 an ounce, higher than USD2,080.29.

In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was up 1.5%, while the Hang Seng index in Hong Kong was jumping 2.7%. The S&P/ASX 200 in Sydney closed up 0.7%.

In Thursday's corporate calendar, there are no scheduled events for London. On the economic side, there are the latest US jobless claims data at 1330 GMT.

By Elizabeth Winter, Alliance News deputy news editor

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