Stocks called up ahead of US inflation print

(Alliance News) - Stocks in London are set to open higher on Thursday, as investors look ahead to the latest inflation data from the US.

IG says futures indicate the FTSE 100 to open 29.9 points, 0.4%, at 7,617.2 on Thursday. The index of London large-caps closed up 59.88 points, or 0.8% at 7,587.30 on Wednesday.

"European markets saw a decent rebound yesterday after the Italian government clarified the details around its windfall tax bombshell from earlier in the week. The gains were also helped by a belief that deflation in China could lead to the end of further rate hikes from central banks here in Europe as well as the US," CMC's Michael Hewson said.

In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.5%, the S&P 500 down 0.7% and the Nasdaq Composite down 1.2%.

Investors' attention will be on the latest inflation print from the US, due at 1330 BST. According to FXStreet-cited consensus, headline inflation in the US is expected to pick up to a 3.3% annual rise in July, from 3.0% in June.

In China on Thursday, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was down 0.6%.

Sentiment in Hong Kong was hit as tensions between the two world powers continued to escalate.

US President Joe Biden on Wednesday issued an executive order aimed at restricting certain American investments in sensitive high-tech areas in China – a move Beijing blasted as being "anti-globalization".

The long-anticipated rules, expected to be implemented next year, target sectors like semiconductors and artificial intelligence, as Washington seeks to limit access to key technologies.

The program is set to prohibit new private equity, venture capital and joint venture investments in advanced semiconductors and some quantum information technologies in China, according to the Treasury Department.

China's foreign ministry blasted the move as an attempt to "engage in anti-globalisation and de-sinicisation", warning that China would "resolutely safeguard its own rights and interests".

"Beijing is strongly dissatisfied and firmly opposes the US' insistence on introducing restrictions on investment in China, and has lodged solemn representations with the US," an unnamed foreign ministry spokesman said in a statement published online.

Biden's executive order "seriously deviates from the market economy and fair competition principles the US has always promoted, and affects companies' normal operation decisions, damages the international trade order, and severely disrupts the security of global industrial and supply chains", the Chinese commerce ministry said in a separate statement.

In Japan on Thursday, the Nikkei 225 index in Tokyo was up 0.7%. The S&P/ASX 200 in Sydney was up 0.1%.

Sterling was quoted at USD1.2718 early Thursday, little changed from USD1.2717 at the London equities close on Wednesday. The euro traded at USD1.0983, lower than USD1.097. Against the yen, the dollar was quoted at JPY143.98, up versus JPY143.60.

Gold was quoted at USD1,917.46 an ounce early Thursday, edging up from USD1,916.66 on Wednesday. Brent oil was trading at USD87.50 a barrel early Thursday, higher than USD86.92 late Wednesday.

In UK corporate calendar on Thursday, there are half-year results from Antofagasta, Deliveroo and Entain.

The economic calendar has US inflation data at 1330 BST, alongside the US weekly unemployment claims report.

By Elizabeth Winter, Alliance News senior markets reporter

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