London stocks are set to open higher on Thursday, buoyed by the US Federal Reserve’s latest policy decision and a renewed surge in gold prices.Futures indicate the FTSE 100 will open 24.6 points higher, or 0.2%, at 10,179.03. The index closed down 0.5% at 10,154.43 on Wednesday.
The Federal Reserve left interest rates unchanged on Wednesday for the first time since July, maintaining the federal funds target range at 3.50% to 3.75% after three consecutive 25 basis point cuts in September, October and December.
Gold reacted strongly to the decision, climbing to a fresh record above $5,500 an ounce. Bullion was quoted at $5,584.96 early Thursday, up from $5,282.35 at the London close on Wednesday.
Currency markets saw further dollar weakness. Sterling rose to $1.3838 from $1.3778, while the euro strengthened to $1.1986 from $1.1935. Against the yen, the dollar slipped to JPY153.08 from JPY153.63.
On Wall Street, markets ended mixed on Wednesday. The Dow Jones Industrial Average edged slightly higher, the S&P 500 finished marginally lower, and the Nasdaq Composite added 0.2%.
After the close, attention turned to Big Tech earnings. Tesla shares rose 2.2% in after-hours trading after better-than-expected fourth-quarter results, despite a sharp drop in net income. Meta Platforms jumped 6.7% after beating revenue expectations and issuing a stronger-than-expected outlook.
Asian markets were mixed. Japan’s Nikkei 225 was marginally higher, China’s Shanghai Composite rose 0.1%, and Hong Kong’s Hang Seng added 0.2%. Australia’s S&P/ASX 200 slipped 0.1%, despite data showing a sharp rise in export prices driven by higher non-monetary gold prices.
