The FTSE 100 is expected to open around 19 points, or 0.2%, higher at 10,705.57 on Thursday, after the US Federal Reserve delivered its first interest-rate increase in more than three years.
The Fed raised its target range by 25 basis points to 3.75%-4.00%, citing still-elevated inflation. Updated projections point to one further rate increase this year, with no additional hikes currently expected in 2027.
Attention now turns to the Bank of England, which announces its latest decision at midday. Markets expect Bank Rate to remain unchanged at 3.75%.
Sterling weakened to around $1.338, while Brent crude traded near $105 a barrel.
Wall Street closed lower following the Fed decision, with the Dow Jones down 1.2%, the S&P 500 falling 0.5% and the Nasdaq marginally lower.
Asian markets were mixed, with Japan’s Nikkei up 0.2%, while Hong Kong’s Hang Seng fell 1.1% and China’s Shanghai Composite slipped 0.3%.
Geopolitical risks also remained in focus after US President Donald Trump threatened fresh trade restrictions on Europe if closer EU-Canada cooperation was deemed hostile to US interests.
Thursday’s UK corporate calendar includes results from Next, Galliford Try and Beauty Tech Group, while investors will also watch final eurozone inflation figures and US jobless claims.
