FTSE 100 called higher while NY treads water

(Alliance News) - The FTSE 100 in London is set to open up on Wednesday, while New York equities closed mixed overnight and Asian stocks trended lower amid a lack of macro catalysts.

IG says futures indicate the FTSE 100 to open up 15.2 points, or 0.2%, at 8,328.87 on Wednesday. The index of London large-caps closed up 100.18 points, 1.2%, at 8,313.67 on Tuesday.

Sterling was quoted at USD1.2485 early Wednesday, lower than USD1.2542 at the London equities close on Tuesday.

The euro traded at USD1.0740 early Wednesday, lower than USD1.0774 late Tuesday. Against the yen, the dollar was quoted at JPY155.23 versus JPY154.49.

In the US on Tuesday, Wall Street ended treading water, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.1% and the Nasdaq Composite down 0.1%.

A solid earnings season and revived hopes that interest rate cuts may still be on the table in 2024 have helped reinvigorate equity markets in the last week, with the Nasdaq alone up 4.4% in the past five trading days.

But on Tuesday, earnings from Disney failed to inspire, sending the stock down 9.5%, with analysts disappointed about forecasts for subscriber growth in the third quarter.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 1.5%. In China, the Shanghai Composite was down 0.3%, while the Hang Seng index in Hong Kong was down 0.5%. The S&P/ASX 200 in Sydney closed marginally down.

Brent oil was trading at USD82.64 a barrel early Wednesday, lower than USD83.51 late Tuesday.

The US halted a shipment of bombs to Israel last week after it failed to address Washington's concerns over plans to invade the southern Gaza city of Rafah, a senior US official said Tuesday.

Biden's administration made the decision when it appeared Israel was on the verge of a major ground operation into Rafah, which Washington has strongly opposed.

Israeli and US officials had been discussing alternatives but "those discussions are ongoing and have not fully addressed our concerns," the senior US official said.

The White House also said Tuesday that key ally Israel must reopen Gaza's Rafah border crossing with Egypt, while expressing hope that a ceasefire deal with Hamas was within reach.

Israel sent tanks into the southern Gaza city of Rafah and seized control of the crossing, a key aid passage, while warning it will deepen its operation if truce talks fail to secure the release of hostages held by Hamas.

President Joe Biden declined to answer questions on the ceasefire talks and the operation in Rafah as he met his Romanian counterpart in the Oval Office, merely smiling at reporters.

Gold was quoted at USD2,318.70 an ounce early Wednesday, lower than USD2,322.59 on Tuesday.

In Wednesday's corporate calendar, JD Wetherspoon, OSB and Renishaw all release trading statements.

By Greg Rosenvinge, Alliance News senior reporter

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