(Alliance News) - Stocks in London are set to open slightly higher on Wednesday, following a strong performance in Asian equity markets.

IG says futures indicate the FTSE 100 to open up 8.3 points, 0.1%, at 7,398.00 on Wednesday. The index of London large-caps closed up 14.87 points, 0.2%, at 7,389.70 on Tuesday.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 1.0%. In China, the Shanghai Composite was up 0.5%, while the Hang Seng index in Hong Kong was up 0.9%.

However, the S&P/ASX 200 in Sydney closed marginally lower.

China surprised markets with a stimulus that boosted stocks, unveiling plans for USD137 billion in extra debt to boost infrastructure spending.

The country approved a plan to issue CNY1 trillion in sovereign bonds to be distributed to local governments to support national disaster prevention and recovery.

The move will lift the fiscal deficit ratio for 2023 to about 3.8% of gross domestic product, the official Xinhua news agency said Tuesday, well above the three percent usually considered Beijing's limit.

Leaders rarely alter the budget mid-year, but it did happen in 2008 after the Sichuan earthquake and during the Asian financial crisis in the late 1990s.

"This decision suggests a commitment to supporting economic growth and addressing fiscal challenges at various levels of government. It also hints at a potential future shift in China's fiscal approach," considered SPI Asset Management's Stephen Innes.

Meanwhile, the United Nations chief has warned at a high-level meeting that the situation in the Middle East is growing more dire by the hour with the risk of the Gaza war spreading through the region increasing as societies splinter and tensions threaten to boil over.

Antonio Guterres called for an immediate humanitarian ceasefire to deliver desperately needed food, water, medicine and fuel.

He appealed "to all to pull back from the brink before the violence claims even more lives and spreads even farther".

In the US on Tuesday, Wall Street ended higher, following some strong earnings from US companies. The Dow Jones Industrial Average closed up 0.6%, the S&P 500 up 0.7% and the Nasdaq Composite up 0.9%

Sterling was quoted at USD1.2169 early Wednesday, higher than USD1.2163 at the London equities close on Tuesday. The euro traded at USD1.0599 early Wednesday, higher than USD1.0588 late Tuesday. Against the yen, the dollar was quoted at JPY149.83, lower versus JPY149.90.

Gold was quoted at USD1,972.22 an ounce early Wednesday, higher than USD1,963.03 on Tuesday. Brent oil was trading at USD86.87 a barrel early Wednesday, higher than USD86.37 late Tuesday.

In Wednesday's UK corporate calendar, a slew of trading statements are released, including by Fresnillo, Ibstock, Lloyds Banking and Reckitt Benckiser.

In the economic calendar on Wednesday, there is the Germany Ifo business climate index at 0900 BST. Later on Wednesday, Canada will announce its interest rate decision.

By Sophie Rose, Alliance News reporter

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