(Alliance News) - Stocks in London are set to open higher on Thursday, ahead of the latest interest rate decision from the European Central Bank, due this afternoon.
Markets also continue to digest hotter-than-expected US inflation data, alongside minutes from the latest US Federal Reserve meeting, as hopes for imminent US interest rate cuts fade.
IG says futures indicate the FTSE 100 to open up 18.9 points, 0.2%, at 7,980.11 on Thursday. The index of London large-caps closed up 26.42 points, 0.3%, at 7,961.21 on Wednesday.
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.1%, the S&P 500 down 1.0% and the Nasdaq Composite down 0.8%.
Inflation data from the US on Wednesday came in stronger than expected, forcing the market to reassess the timing of an easing in monetary policy.
According to the Bureau of Labor Statistics, the year-on-year rate of US consumer price inflation picked up to 3.5% last month, from 3.2% in February, taking it further above the Fed's 2% inflation target.
The rate of consumer price inflation had been expected to pick up to just 3.4%, according to FXStreet cited consensus.
There were also minutes from the US Federal Reserve to digest on Wednesday.
Federal Reserve officials said they required more confidence that inflation was moving towards its 2% target before cuts to interest rates could be considered, minutes from the March Federal Open Market Committee meeting showed.
Thursday's economic calendar has an interest rate decision from the European Central Bank. It is due out at 1315 BST.
Markets are expecting the central bank to keep interest rates unchanged.
Sterling was quoted at USD1.2547 early Thursday, flat compared to USD1.2546 at the London equities close on Wednesday. The euro traded at USD1.0745 early Thursday, slightly higher than USD1.0743 late Wednesday. Against the yen, the dollar was quoted at JPY152.92, up versus JPY152.88.
In China, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was down 0.2%.
China's inflation rate slowed in March, official data showed Thursday, as policymakers struggle to jumpstart persistently low spending in the world's second-largest economy.
The consumer price index last month edged up by 0.1% year-on-year, according to the National Bureau of Statistics, below the 0.4% gain forecast by a Bloomberg poll of analysts.
"In March, under the impact of factors such as the seasonal decline in consumer demand after the holidays and the overall sufficient market supply, the increase in the nationwide CPI... somewhat declined," the NBS said.
In Tokyo on Thursday, the Nikkei 225 index in Tokyo was down 0.4%. The S&P/ASX 200 in Sydney closed down 0.4%.
Gold was quoted at USD2,341.22 an ounce early Thursday, higher than USD2,334.91 on Wednesday.
Brent oil was trading at USD90.53 a barrel early Thursday, higher than USD89.31 late Wednesday.
In the local corporate diary on Thursday, kitchen and bathroom products seller Norcos releases a trading statement.
By Sophie Rose, Alliance News senior reporter
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