LONDON MARKET EARLY CALL: FTSE 100 seen up as UK business outlook up

(Alliance News) - Stocks in London are set to open higher on Wednesday, despite losses on Wall Street overnight, as UK business confidence improves and investors monitor developments in peace negotiations over the war in Ukraine.

IG says futures indicate the FTSE 100 to open 53.9 points higher, 0.5%, at 10,805.49 on Wednesday. The index of London large-caps closed down 0.3% at 10,751.59 on Tuesday.

Sterling was quoted at USD1.3333 early Wednesday, higher than USD1.3323 at the London equities close on Tuesday. Against the euro, sterling rose to EUR1.1956 from EUR1.1949 a day prior.

The euro traded at USD1.1152 early Wednesday, marginally higher than USD1.1150 late Tuesday. Against the yen, the dollar was quoted at JPY158.87 versus JPY158.79.

Brent oil was trading at USD92.36 a barrel early on Wednesday, up from USD91.74 late Tuesday.

UK business expectations recovered in October, driven mainly by an improvement in the services sector, according to a survey published by S&P Global.

The S&P Global UK business outlook survey showed expectations for business activity, profits and employment all strengthened in October, with the net level of sentiment rising to plus 35% from plus 26% in June.

The improvement was largely driven by a rebound in the services sector, where net expectations climbed to plus 34% from plus 24%.

Manufacturers also reported a modest improvement in confidence, with net expectations edging up to plus 39% from plus 38%.

S&P Global described the June reading as "historically subdued".

In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P 500 down 0.4% and the Nasdaq Composite down 0.7%.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 1.3%. In China, the Shanghai Composite rose 0.5%, while the Hang Seng index in Hong Kong declined 0.8%. The S&P/ASX 200 in Sydney was up 0.3%.

Meanwhile, US Secretary of State Marco Rubio said the UK and other European countries should have a seat at the negotiating table in efforts to broker peace between Russia and Ukraine.

Speaking at a meeting of G7 foreign ministers in Paris, Rubio called for European participation in future negotiations involving Washington, Moscow and Kyiv, arguing that European countries "are a part of solving this problem for the long term".

He also acknowledged concerns among US allies that "America's going to cut some deal with Russia and leaves Europe out of the equation".

Rubio had previously indicated that Moscow opposed European involvement in the negotiations.

Separately, Ukrainian President Volodymyr Zelensky said negotiators at US-led talks between Ukraine and Russia in Abu Dhabi were working towards a possible major prisoner exchange.

Gold was quoted at USD4,058.08 an ounce early on Wednesday, up from USD4,025.90 late Tuesday.

In Wednesday's corporate calendar, Fuller Smith & Turner and James Cropper report half-year results, while Conduit Holdings, ITV, Spirax Group and Taylor Wimpey issue trading statements.

In the economic calendar on Wednesday, Germany releases final consumer price index figures for October at 0700 GMT. The preliminary reading showed annual inflation slowing to 2.8% from 3.3% in September.

Ireland also publishes consumer inflation figures, while the US releases its monthly federal budget statement.

By Eva Castanedo, Alliance News senior economics reporter

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