London stocks are expected to open lower on Thursday as investors await key UK economic data, while fresh US strikes against Iran and cautious comments from the Federal Reserve weigh on sentiment.
FTSE 100 futures point to a decline of around 35 points, or 0.3%, to 10,484.42. The blue-chip index closed 0.1% lower at 10,515.92 on Wednesday.
Attention will turn to UK GDP figures at 0700 BST, with economists expecting the economy to have grown 0.1% month-on-month in May after a 0.1% fall in April.
Trade and industrial production figures are also due, with the UK goods trade deficit forecast at £23.6 billion and industrial output expected to slip 0.1%.
Sterling strengthened to US$1.3537 from US$1.3486 at Wednesday’s London close, while the pound also edged higher against the euro to EUR1.1800.
The Federal Reserve’s Beige Book showed US economic activity expanded at a modest pace in late May and June, with prices continuing to rise moderately.
Fed Governor Lisa Cook also warned she would be prepared to support tighter policy if inflation fails to ease.
Wall Street closed higher overnight after another softer-than-expected US inflation reading strengthened expectations that the Federal Reserve will keep interest rates unchanged in the coming months.
The Dow Jones gained 0.3%, the S&P 500 rose 0.4% and the Nasdaq added 0.6%.
Apple climbed to a record high following reports that it had secured approval to launch its generative AI features in China.
Asian markets were mixed this morning, with chip stocks under pressure. South Korea’s Kospi fell 6.3% and Japan’s Nikkei dropped 3.2%, while Hong Kong’s Hang Seng rose 1.5%.
Geopolitics remained in focus after US Central Command confirmed another wave of strikes against Iranian military capabilities linked to threats against shipping through the Strait of Hormuz.
President Donald Trump warned that the attacks could be widened unless Tehran returned to negotiations.
Gold eased to US$4,029.10 an ounce from US$4,048.39.
In Thursday’s UK corporate calendar, Crest Nicholson, Ocado and SSE report half-year results, while DCC, Dunelm, Experian and Wise are among those issuing trading updates.
