Stocks called up ahead of key PMI data

(Alliance News) - Stocks in London are set to open higher on Wednesday, ahead of a number of PMI prints from across the globe, including the eurozone and the US.

IG says futures indicate the FTSE 100 index of large-caps to open 20.71 points higher, 0.3%, at 7,574.80 on Wednesday. The FTSE 100 index ended up 102.35 points, or 1.4%, at 7,554.09 on Tuesday.

Sterling was quoted at USD1.1983 early Wednesday, up a touch from USD1.1980 at the London equities close on Tuesday.

UK shop price inflation faded ever-so-slightly last month, figures showed, as consumer brace for another "difficult year".

According to the latest British Retail Consortium-NielsenIQ tracker, shop price annual inflation decelerated to 7.3% in December, from 7.4% in November.

Food inflation, however, quickened to 13.3% in December, from 12.4% a month earlier.

"2023 will be another difficult year for consumers and businesses as inflation shows no immediate signs of waning. Retailers will continue to work hard to support their customers and keep prices low. However, further high investment in prices may no longer be viable once the government's energy bill support scheme for business expires in April," BRC Chief Executive Helen Dickinson commented.

The euro traded at USD1.0567 early Wednesday, higher than USD1.0550 late Tuesday. Against the yen, the dollar was quoted at JPY130.78, down versus JPY130.89.

In the US on Tuesday, Wall Street ended slightly lower as it returned to trading following the new year's break, with the Dow Jones Industrial Average ending down just 10.88 points, the S&P 500 down 0.4% and the Nasdaq Composite down 0.8%.

The US manufacturing sector rounded off 2022 with another decline in activity, though inflationary pressure eased, survey results on Tuesday showed.

The S&P Global manufacturing purchasing managers' index faded to 46.2 points in December from 47.7 in November, in line with the flash estimate. December's reading was again below the 50-point mark which separates growth from decline.

In Asia on Wednesday, the Japanese Nikkei 225 index closed down 1.5%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was 2.4% higher. The S&P/ASX 200 in Sydney closed down 0.4%.

An "overwhelming majority" of the EU's 27 member countries want passengers coming from China to be systematically tested for Covid before departure, the European Commission said.

The consensus recommendation emerged from a meeting of EU health ministry officials held Tuesday in Brussels. A crisis meeting to be held Wednesday on the issue will decide what coordinated measures will be applied across the bloc.

However, travellers testing positive for Covid after arriving in the UK from China will not be forced to quarantine, a Cabinet minister said.

Transport Secretary Mark Harper said the move to test those coming into the country on flights from China is about "collecting information" due to the Beijing government refusing to share its own coronavirus data.

Gold was quoted at USD1,847.62 an ounce early Wednesday, sharply higher than USD1,829.14 on Tuesday. Brent oil was trading at USD81.82 a barrel, down from USD83.03.

In the economic calendar on Wednesday, there's a slew of PMI prints for the EU, Germany, France, and the US.

By Heather Rydings, Alliance News senior economics reporter

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