(Alliance News) - Stocks in London are set to open lower on Monday, ahead of a week centred around interest rate decisions from the three major central banks.
IG says futures indicate the FTSE 100 to open 12.93 points, or 0.1%, lower on Monday. The index of London large-caps closed up 17.68 points, 0.2%, at 7,663.73 on Friday.
The US Federal Reserve will announce its rate decision on Wednesday, with the European Central Bank following suit a day after. Both central banks are expected to raise their respective interest rates by 25 basis points.
With another hike priced in for the Fed and the ECB, market attention will be fixed on whether the moves mark the end of the central banks' respective hiking cycles.
The Bank of Japan begins its two-day monetary policy meeting on Thursday. Whereas hikes are expected from the Fed and the ECB, the BoJ is expected to leave its ultra-loose monetary policy unchanged.
Bloomberg reported that officials have hinted the central bank would stand pat on its yield curve control programme which sees it control the range in which it allows government bonds to fluctuate. The YCC is a way of controlling long-term interest rates.
The dollar was mixed on Monday morning, though analysts at Brown Brother Harriman predicted that the currency would strengthen this week as "monetary policy divergences continue to widen" globally.
Sterling was quoted at USD1.2867 early Monday, up from USD1.2852 at the London equities close on Friday.
The euro traded at USD1.1119 early Monday, down a touch from USD1.1121 late Friday. Against the yen, the dollar was quoted at JPY141.55, lower versus JPY141.64.
In Tokyo on Monday, the Nikkei 225 index was up 1.3%.
In China, the Shanghai Composite was flat, while the Hang Seng index in Hong Kong was down 1.5%.
The S&P/ASX 200 in Sydney was flat.
In the US on Friday, Wall Street ended on a muted note, with the Dow Jones Industrial Average and the S&P 500 marginally higher and the Nasdaq Composite up 0.2%.
Gold was quoted at USD1,960.54 an ounce early Monday, slightly higher than USD1,960.17 on Friday. Brent oil was trading at USD80.86 a barrel, up from USD80.41 late Friday.
In Monday's corporate calendar, there are trading statements from Vodafone, Cranswick, and discovery.
The economic calendar on Monday has flash PMI prints from the EU, UK, and US from 0900 BST.
By Heather Rydings, Alliance News senior economics reporter
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