(Alliance News) - Stocks in London are set to open lower on Monday, with all eyes on the latest interest rate decision from the US Federal Reserve.
IG says futures indicate the FTSE 100 to open down 58.9 points, 0.7%, at 8,187.97 on Monday. The index of London large-caps closed down 39.97 points, 0.5%, at 8,245.37 on Friday.
Sterling was quoted at USD1.2716 early Monday, lower than USD1.2724 at the London equities close on Friday. The euro traded at USD1.0751 early Monday, lower than USD1.0812 late Friday. Against the yen, the dollar was quoted at JPY157.10, higher versus JPY156.82.
The US Fed will announce its latest interest rate decision on Wednesday this week. At the central bank's fourth meeting of 2024, the Fed is expected to leave interest rates unchanged.
Last week saw the Bank of Canada and European Central Bank break the trend of keeping interest rates unchanged. Both central banks cut interest rates by 25 basis points, as expected by markets.
Yet, the ECB still has "a long way to go" to tame inflation, its president Christine Lagarde said Friday.
In an op-ed published Friday evening in several European newspapers, Lagarde said that inflation had "slowed significantly" and was expected to fall to the target level of two percent by next year.
"But there is still a long way to go until inflation is squeezed out of the economy. It will not be an entirely smooth ride," she continued.
Also in Europe, far-right parties made striking gains in EU elections on Sunday, while the ultimate losers were French President Emmanuel Macron – and the Greens, AFP reports.
In France, Macron's liberal party received a drubbing by France's National Rally led by Marine Le Pen. The French president responded by swiftly dissolving France's national parliament and calling for snap elections.
In Japan on Monday, the Nikkei 225 index in Tokyo was up 1.0%.
Japanese equities rose in early trading following the release of government data showing the economy shrank less than initially reported in the first quarter.
On Monday the Japanese government released revised gross domestic product figures that showed the country's economy shrank 1.8% in the first quarter, better than the 2% contraction initially reported in May.
Financial markets in Shanghai, Hong Kong and Australia were closed on Monday for public holidays.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average and Nasdaq Composite down 0.2%, meanwhile the S&P 500 lost 0.1%.
Gold was quoted at USD2,296.50 an ounce early Monday, lower than USD2,312.90 on Friday. Brent oil was trading at USD79.74 a barrel early Monday, lower than USD79.81 late Friday.
In Monday's UK corporate calendar, there are no events scheduled. On Tuesday, there is a trading statement from Bellway.
The economic calendar for next week starts off pretty quiet, and will pick up with UK unemployment data at 0700 BST on Tuesday.
By Sophie Rose, Alliance News senior reporter
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