(Alliance News) - Stocks in London are set to open slightly higher on Thursday, ahead of a slew of services PMI data, including for the UK, while reacting to data in China and a manufacturing PMI in Japan.

Investors are also digesting the latest minutes from the Federal Reserve, which have somewhat tempered the market's lofty expectations for interest rate cuts this year.

IG says futures indicate the FTSE 100 to open up 8.8 points, or 0.1%, at 7,691.13 on Thursday. The index of London large-caps closed down 39.19 points, 0.5%, at 7,682.33 on Wednesday

The services PMI for the UK will be released at 0930 GMT. Survey data will also be released for the EU and Germany this morning, followed by the US in the afternoon.

Sterling was quoted at USD1.2671 early Thursday, higher than USD1.2646 at the London equities close on Wednesday. The euro traded at USD1.0923, higher than USD1.0915. Against the yen, the dollar was quoted at JPY143.63, higher than JPY143.50.

In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average and the S&P 500 both down 0.8%, while the Nasdaq Composite was down 1.2%

Federal Reserve officials concluded that interest rate cuts are likely in 2024, although they deemed it would be appropriate to maintain a restrictive stance "for some time," according to minutes of December's meeting.

"In discussing the policy outlook, participants viewed the policy rate as likely at or near its peak for this tightening cycle, though they noted that the actual policy path will depend on how the economy evolves," the minutes stated.

The minutes indicated increased optimism among participants about the path of inflation, noting "clear progress". The committee expressed a willingness to cut the benchmark lending rate in 2024 should that trend continue, though the timing of such a move remained uncertain.

In Asia on Thursday, the Nikkei 225 index in Tokyo closed down 0.5%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was down 0.1%. The S&P/ASX 200 in Sydney closed down 0.4%.

China's services sector expanded at a faster pace at the end of 2023, according to the latest survey data. The Caixin services purchasing managers' index rose to 52.9 points from 51.5 in November, climbing further above the 50-point no-change mark.

Japanese manufacturing continued to contract in December. The au Jibun Bank manufacturing PMI fell to 47.9 from 48.3 in November, indicating a worsening downturn.

Gold was quoted at USD2,045.71 an ounce early Thursday, higher than USD2,038.89 on Wednesday.

Brent oil was trading at USD78.74 a barrel, higher than USD78.13.

In Thursday's corporate calendar, Next posts a trading statement.

In the economic calendar, consumer price inflation data is released for Germany this morning, alongside two US jobs data in the afternoon: initial jobless claims and the ADP jobs report.

By Greg Rosenvinge, Alliance News senior reporter

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