(Alliance News) - Stocks in London were set to open flat on Monday, ahead of the appearance before the US Congress by the chair of the Federal Reserve.
IG says futures indicate the FTSE 100 index of large-caps to open down 1.4 points at 7,945.71 on Monday. The FTSE 100 index closed up just 3.07 points at 7,947.11 on Friday, ending the week up 0.9%.
Sterling was quoted at USD1.2025 early Monday, firming from USD1.1979 at the London equities close on Friday. The euro traded at USD1.0638, higher than USD1.0601. Against the yen, the dollar was quoted at JPY135.89, down versus JPY136.21.
Wall Street rallied on Friday, with the Dow Jones Industrial Average ending up 1.2%, the S&P 500 up 1.6% and the Nasdaq Composite 2.0% higher.
"As we look ahead to this week the main focus, apart from Wednesday's ADP, and Friday's payrolls report, will be on Fed chair Jay Powell's testimony to US lawmakers tomorrow and Wednesday, where he is likely to be quizzed on how he sees the US economy in light of recent strong data, and what measures the Fed might feel inclined to take if the data continues to come in strong," said CMC Markets' Michael Hewson.
"It's unlikely that he will give too many clues given how close to the next meeting we are, and the main takeaway is likely to be data dependence, however, don't be surprised if markets pore over every single nuance just so that they can reinforce their own particular mindset."
The next Federal Open Market Committee meeting is on March 21 and 22.
In Asia on Monday, the Nikkei 225 index in Tokyo closed up 1.1%. The S&P/ASX 200 in Sydney closed up 0.6%.
China's economy is expected to grow "around 5%", outgoing Chinese Premier Li Keqiang said as he opened this year's National People's Congress in Beijing. Last year's growth target was around 5.5%.
The focus of the annual week-long meeting of hand-picked delegates is the approval of the planned formation of a new government and the setting of the country's economic and political course.
China also plans to increase its military spending by 7.2% this year in response to geopolitical uncertainties, according to a draft budget.
In China, the Shanghai Composite was down 0.3%, while the Hang Seng index in Hong Kong was up 0.3%.
Gold was quoted at USD1,853.42 an ounce early Monday, higher than USD1,845.56 on Friday. Brent oil was trading at USD85.20 a barrel, little changed from USD85.34.
In Monday's UK corporate calendar, Craneware, Seeing Machines and Amte Power will publish their half-year results.
In the economic calendar, there are construction PMIs from the EU and the UK.
By Elizabeth Winter, Alliance News senior markets reporter
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