FTSE 100 to tread water amid election nerves

(Alliance News) - Stocks in London are set to open slightly higher on Thursday, as the UK gets ready to polling stations.

Politics has also too centre stage across the Atlantic, with Joe Biden hoping to save his reelection bid.

IG says futures indicate the FTSE 100 to open up 12.58 points, 0.2%, 8,183.70 on Thursday. The index of London large-caps closed on Wednesday.

Thursday will see the UK general election take centre stage, with Brits heading to polling stations up and down the country.

Britain's political leaders made a frantic push for votes late Wednesday in the last hours of an election campaign expected to return a Labour government after 14 years of Conservative rule.

Prime Minister Rishi Sunak insisted in a closing speech to supporters that the contest was "not over", while conceding he was the "underdog". It came hours after a final flurry of polls showed his ruling Tories on course for a record defeat to Labour.

The Tory party suffered another blow on Wednesday, when the Sun tabloid – famous for backing election winners – endorsed Keir Starmer's Labour.

If Starmer does win the general election, he will end nearly a decade and a half of Conservative power.

In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.1%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.9%.

Markets in New York will be shut on Thursday for July 4 Independence Day.

Minutes from the June Federal Open Market Committee meeting showed that Federal Reserve officials need more confidence that inflation is heading towards target before they are prepared to lower interest rates.

In the US political space, Joe Biden scrambled to save his US reelection bid, with pressure mounting on him to pull out following a disastrous debate showing, and the president himself reportedly saying the coming days could be make-or-break.

Sterling was quoted at USD1.2741 early Thursday, lower than USD1.2768 at the London equities close on Wednesday. The euro traded at USD1.0785 early Thursday, lower than USD1.0806 late Wednesday. Against the yen, the dollar was quoted at JPY161.52, up versus JPY161.38.

In Asia on Thursday, the Nikkei 225 index in Tokyo was up 0.9%. In China, the Shanghai Composite was down 0.7%, while the Hang Seng index in Hong Kong was down 0.1%. The S&P/ASX 200 in Sydney closed up 1.2%.

Gold was quoted at USD2,355.70 an ounce early Thursday, lower than USD2,361.74 on Wednesday. Brent oil was trading at USD86.83 a barrel early Thursday, higher than USD86.33 late Wednesday.

Thursday's economic calendar has a UK construction PMI reading at 0930 BST, after eurozone data at 0830 BST.

The local corporate calendar has third-quarter numbers from polymer products maker Victrex.

By Sophie Rose, Alliance News senior reporter

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