London equities are set for a subdued open on Thursday, with investors adopting a cautious stance ahead of key central bank decisions.
Futures data points to the FTSE 100 opening marginally lower, down 2.4 points at 10,210.71, following a 1.2% decline in the previous session.
Overnight, the Federal Reserve held interest rates steady at 3.50%–3.75%, citing a “high level of uncertainty” linked in part to rising oil prices and geopolitical risks. While the decision was widely expected, divisions within the Federal Open Market Committee were evident, with one policymaker dissenting in favour of a rate cut and others opposing any easing bias in forward guidance.
Market focus now shifts to Europe, where the Bank of England is expected to hold rates at 3.75% later today, alongside a policy decision from the European Central Bank, where no change is anticipated.
Brent crude, the global oil benchmark, jumped as much as 7.1% overnight to above $126 per barrel – its highest level in four years. This is the first time prices have moved past $120 since the US and Israel launched their campaign against Iran at the end of February, highlighting renewed concerns over supply disruption.
Currency markets were mixed. Sterling weakened slightly against the dollar to $1.3467 but firmed against the euro at €1.1547. The euro slipped to $1.1663, while the dollar strengthened modestly against the yen to ¥160.53.
Asian markets were mixed overnight. Japan’s Nikkei 225 fell 1.3%, while China’s Shanghai Composite edged higher. Hong Kong’s Hang Seng Index declined 1.2% despite data showing continued expansion in China’s manufacturing sector, albeit with mixed signals across official indicators.
In the US, markets closed mixed on Wednesday, with the Dow Jones Industrial Average down 0.6%, the S&P 500 little changed, and the Nasdaq Composite slightly higher.
After-hours trading was driven by earnings from major tech names. Alphabet surged 7% after strong results, while Microsoft and Amazon posted modest gains on solid earnings. In contrast, Meta Platforms fell 7% after increasing its capital expenditure guidance despite beating expectations.
Attention now turns to a busy corporate calendar in London, with updates expected from Unilever, Beazley, Endeavour Mining, Glencore and Persimmon, among others.
