(Alliance News) - Equities in London are called to open flat on Wednesday, ahead of the latest Federal Reserve interest rate decision, while a host of financial markets in mainland Europe and beyond are closed for public holidays.
IG says futures indicate the FTSE 100 to open down 0.3 of a point at 8,143.83 on Wednesday. The index of London large-caps inched down 2.90 points at 8,144.13 on Tuesday.
The Fed announces its latest interest rate decision at 1900 BST. It is expected to keep rates on hold this week, with Chair Jerome Powell likely to say that the central bank is not yet confident enough to cut as inflation remains lofty.
"The market is positioned for a hawkish message from the Fed chair Jerome Powell this week, and this is weighing on stocks ahead of the meeting. If Powell mentions the disappointment in wages making the Fed less confident in the outlook for inflation, and the potential for a delay to the first rate cut, then this could be perceived as hawkish," XTB analyst Kathleen Brooks commented.
In New York, the Dow Jones Industrial Average tumbled 1.5% on Tuesday. The S&P 500 lost 1.6% and the Nasdaq Composite plunged 2.0%.
In Tokyo, the Nikkei 225 was down 0.1% in late dealings on Wednesday. In Sydney, the S&P/ASX 200 was 1.1% lower.
Financial markets in Shanghai and Hong Kong are closed on Wednesday. In Shanghai, they do not re-open until Monday. Financial markets are also closed in Frankfurt, Paris, Madrid and elsewhere in Europe on Wednesday.
The pound was quoted at USD1.2478 early Wednesday, down from USD1.2523 at the time of the London equities close on Tuesday. The euro stood at USD1.0655, down from USD1.0690. Against the yen, the dollar was trading at JPY157.88, up from JPY157.44.
Brent oil was quoted at USD85.62 a barrel early Wednesday London time, down from USD86.42 late Tuesday. Gold was quoted at USD2,287.36 an ounce, down from USD2,298.10.
The economic calendar for Wednesday has a UK manufacturing PMI at 0930 BST. In the afternoon, there is the US ADP jobs report at 1315 BST, before the Fed decision in the evening.
In Wednesday's UK corporate calendar, there are first quarter results from pharmaceutical firm GSK. There are trading statements from retailer Next and medical devices maker Smith & Nephew.
By Eric Cunha, Alliance News news editor
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