(Alliance News) - Stocks in London were set to open flat on Thursday, following a flat close on Wall Street and a mixed slate of US corporate earnings.

IG says futures indicate the FTSE 100 index of large-caps to open down 3.0 points at 7,895.77 on Thursday. The index closed down 10.67 points, 0.1%, at 7,898.77 on Wednesday.

Early Thursday, sterling was unchanged from the London equities close on Wednesday at USD1.2424. The euro traded at USD1.0957, flat from USD1.0958. Against the yen, the dollar was quoted at JPY134.80, up versus JPY134.69.

In Asia on Thursday, Tokyo's Nikkei 225 index was up 0.3%. In China, the Shanghai Composite was down 0.5%, while the Hang Seng index in Hong Kong was down 0.1%. The S&P/ASX 200 in Sydney was flat.

Gold was quoted at USD1,992.45 an ounce early Thursday in London, a dollar lower than USD1,993.72 late on Wednesday. Brent oil was trading at USD82.20 a barrel, down from USD83.68.

In New York on Wednesday, the Dow Jones Industrial Average ended down 0.2, and the S&P 500 and the Nasdaq Composite both closed flat.

After the US market close on Wednesday, Tesla reported a jump in first quarter revenue but said profit was hit by rising costs and a drop in average selling prices, which saw margins plunge.

The stock fell 6.1% in after-hours trading in New York, having closed down 2.0% prior to the release.

The electric car maker posted total revenue in the quarter of USD23.33 billion, up 24% from USD18.76 billion a year before, boosted by growth in vehicle deliveries, although there was an adverse foreign exchange hit of USD800 million.

But operating income decreased to USD2.66 billion in the quarter from USD3.60 billion a year prior, resulting in a 11.4% operating margin down from 19.2% in 2022 and 16% in the previous quarter.

Profitability was also knocked by reduced selling prices, higher raw material, commodity, logistics and warranty costs and lower credit revenue. GAAP net income fell 24% to USD2.51 billion from USD3.32 billion.

"Grasping the nettle and sacrificing margin to get the top line moving is often the correct move, but only when done carefully and not for prolonged periods of time, otherwise the brand is comprised," Hargreaves Lansdown's Sophie Lund-Yates considered.

Thursday's UK corporate diary has trading statements from miner Rio Tinto, investment platform AJ Bell, takeaway delivery company Deliveroo, and estate agent Foxtons. Home furnishings retailer Dunelm reports third-quarter results and magazine seller WH Smith half-year results.

The economic calendar has a eurozone consumer confidence reading at 1500 BST, after the weekly US jobless claims report at 1330 BST.

By Elizabeth Winter, Alliance News senior markets reporter

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