London stocks are expected to open higher on Wednesday, following mixed performance on Wall Street and a series of weaker-than-forecast US economic reports.
Futures suggest the FTSE 100 will rise by 23 points, or 0.2%, to 10,376.84 at the open. The index ended Tuesday down 0.3% at 10,353.84.
Sterling strengthened slightly, trading at USD1.3668 early Wednesday compared with USD1.3661 at Tuesday’s London close.
In US trading overnight, the Dow Jones Industrial Average secured its third straight record close, while broader markets ended lower. The Dow edged up 0.1%, but the S&P 500 declined 0.3% and the Nasdaq Composite fell 0.6%, as weaker-than-expected retail sales data prompted some caution despite an otherwise robust earnings season.
Economic data in the US pointed to softer momentum. Retail sales unexpectedly stagnated in December, holding steady at USD735.0 billion compared with USD735.1 billion in November, when sales rose 0.6%. Markets had expected a 0.4% monthly increase.
Asian markets traded higher on Wednesday. China’s Shanghai Composite rose 0.2%, while Hong Kong’s Hang Seng gained 0.3%, after inflation data showed consumer price growth slowing. China’s CPI rose 0.2% year-on-year in January, down from 0.8% in December and below forecasts of 0.4%. Producer price deflation eased to -1.4% from -1.9%.
Australia’s S&P/ASX 200 surged 1.7%, led by Commonwealth Bank of Australia, which jumped 6.8% after posting stronger first-half profits and increasing its dividend. Net profit rose 4.5% to AUD5.37 billion, while the interim dividend increased 4.4% to AUD2.35 per share.
Japan’s Tokyo Stock Exchange remained closed for National Foundation Day.
