FTSE seen flat ahead of BoE rate call

Stocks in London are set to open virtually flat on Thursday, as investors tread cautiously ahead of the Bank of England interest rate decision. IG forecasts the FTSE 100 to open 2.4 points lower at 10,210.71. The index closed down 1.2% at 10,213.11 on Wednesday. The US Federal Reserve left interest rates unchanged amid a 'high level of uncertainty,' with a 11-1 vote to maintain the federal funds rate at 3.50%-3.75%. Governor Stephen Miran dissented, advocating a quarter-point cut. Divisions within the Federal Open Market Committee were highlighted by Governors Beth Hammack, Neel Kashkari, and Lorie Logan, who did not support an easing bias in the accompanying statement. The FOMC noted that Middle East developments contribute to economic outlook uncertainty, though recent indicators suggest solid economic expansion. Attention now turns to other central bank decisions on Thursday: the Bank of England is expected to hold its rate at 3.75%, while the European Central Bank is set to keep its deposit rate unchanged at 2.00%. Brent oil traded at USD113.60 a barrel early Thursday, up from USD111.01 late Wednesday. Sterling was at USD1.3467 early Thursday, down from USD1.3491 at the London equities close on Wednesday. Against the euro, sterling rose to EUR1.1547 from EUR1.1530. The euro traded at USD1.1663, down from USD1.1695. In Asia, the Nikkei 225 in Tokyo fell 1.3%, while the Shanghai Composite in China was marginally higher. The Hang Seng in Hong Kong dropped 1.2%. S&P Global reported China’s manufacturing PMI rising to 52.2 from 50.8, beating the FXStreet consensus of 51.0. However, official figures from the National Bureau of Statistics showed a mixed picture: the manufacturing PMI eased to 50.3 (from 50.4) and the non-manufacturing PMI slipped to 49.4 (from 50.1). In the US, Wall Street ended mixed: the Dow Jones Industrial Average fell 0.6%, the S&P 500 marginally declined, and the Nasdaq Composite rose slightly. Corporate news included strong quarterly results from major tech firms like Alphabet (Google Search revenue exceeded expectations), Microsoft (cloud demand boosted profits), and Amazon (net income rose 77% YoY). Meta Platforms, however, faced criticism for raising its 2026 capital expenditure guidance to USD135 billion despite better-than-expected sales. Gold traded at USD4,555.72 an ounce early Thursday, up from USD4,551.30. Thursday’s corporate calendar includes first-quarter results from Unilever, Beazley, Endeavour Mining, Glencore, and Persimmon. The economic calendar features eurozone GDP, CPI, and unemployment data releases, with US GDP figures and initial jobless claims also due.