(Alliance News) – London stock markets are expected to open flat on Friday, continuing to miss out on artificial intelligence-driven gains seen in stock markets across the world.
IG says futures indicate the FTSE 100 is expected to open 1.7 points lower at 7,682.79 on Friday. London’s large-cap index closed up 21.98 points, or 0.3 percent, at 7,684.49 points on Thursday.
“While records were broken everywhere following Nvidias’ bumper Q4 update, things looked distinctly lukewarm on both the FTSE 100 and 250,” Danni Hewson, head of analysis, observed on Thursday finance at AJ Bell.
“If only Arm had not opted for a listing in New York. Its optimistic trajectory could have helped give a boost to AI,” she said.
In the United States, Wall Street recovered on Thursday: the Dow Jones Industrial Average increased by 1.2%, the S&P 500 index by 2.1% – both reaching new records – and the index Nasdaq Composite jumped 3.0%, closing just short of its all-time high.
Following a string of impressive results, Nvidia shares soared 16%, adding about $250 billion to its market capitalization, setting a new daily upside record.
AI-fueled optimism helped stocks shake off optimistic comments from several U.S. Federal Reserve officials.
“I’m going to need to see at least two more months of inflation data before I can judge whether January was a speed bump or a pothole,” Fed Governor Christopher Waller said during a conference in Minneapolis, in prepared remarks.
He said the Fed’s rate-setting committee can afford to “wait a little longer to ease monetary policy” given the recent rise in inflation and continued strength in the economy American and the job market.
The dollar was mixed against major currencies in early trading in Europe.
Sterling was trading at $1.2663 early Friday, higher than $1.2641 at the close of London stock markets on Thursday. The euro was trading at 1.0826 USD, higher than 1.0817 USD. Against the yen, the dollar was quoted at 150.64 yen, up from 150.53 yen.
In other disappointing news for the UK, consumer confidence stagnated after months of positivity as persistent inflation led households to curb their spending, figures show.
GfK’s consumer confidence index fell two points to minus 21 in February, although forecasts for personal finances over the next 12 months remained unchanged and were 18 points higher than last year at the same period.
In Asia, the Nikkei 225 index in Tokyo closed up 2.2%. In China, the Shanghai Composite Index rose 0.6%, while the Hang Seng Index in Hong Kong rose 0.1%.
Standard Chartered rose 2.7% in Hong Kong in afternoon trading.
The FTSE 100-listed Asian bank announced a new $1 billion share buyback, while announcing a double-digit profit rise for 2023. In 2023, StanChart said it made a profit of operating revenue of $18.02 billion, an increase of 10% from the previous year’s $16.32 billion. Profit before tax increased by 19%, from USD 4.29 billion to USD 5.09 billion.
The S&P/ASX 200 index in Sydney closed 0.4% higher.
In commodities, gold was quoted at $2,018.97 an ounce early Friday, down from Thursday’s $2,022.91. Brent oil was trading at USD 83.25 per barrel, slightly lower than USD 83.33.
In Friday’s business calendar there will be half-year results from City of London Investment Group and full-year results from Irish Residential Properties.
In Friday’s economic calendar, there is a print of Germany’s economic growth soon, with the IFO German Business Climate Index at 09:00 GMT.
By Elizabeth Winter, Alliance News Deputy Editor
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2024-02-23 06:52:08
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