(Alliance News) - Stocks in London are set to open higher on Tuesday, supported by decent trade in Asia, though trade in New York was mixed overnight.
In focus in the afternoon will be the first batch of US labour market data this week. Releases will culminate with Friday's nonfarm payrolls reading.
IG says futures indicate the FTSE 100 to open 11.8 points higher, 0.1%, at 8,324.69 on Tuesday. The index of London large-caps 25.59 points, 0.3%, at 8,312.89 on Monday.
The pound was quoted at USD1.2647, moving ever-so-slightly higher from USD1.2643 at the time of the London equities close on Monday. The euro stood at USD1.0487, barely budging from USD1.0486. Against the yen, the dollar was trading at JPY150.16, a rise from JPY149.24.
Over in New York on Monday, the Dow Jones Industrial Average fell 0.3%. The S&P 500 added 0.2% and the Nasdaq Composite surged 1.0%. The S&P and Nasdaq achieving record closing highs.
The DAX 40 in Frankfurt achieved a record close on Monday, though it is called to open flat on Tuesday. The CAC 40 in Paris, which missed out on a rally on Monday by ending flat amid French political uncertainty, is called up 0.3% on Tuesday.
In Tokyo, the Nikkei 225 was up 1.9%, supported by semiconductor stocks. Tokyo Electron pushed 4.2% higher.
In China, the Shanghai Composite added 0.5%, and the Hang Seng Index in Hong Kong rose 0.8%. The S&P/ASX 200 in Sydney rose 0.6%.
Brent oil was quoted at USD72.05 a barrel early Tuesday, up from USD71.85 at the time of the European equities close on Monday. Gold climbed to USD2,649.34 an ounce from USD2,642.00.
Tuesday's global economic diary sees the US job openings survey and labour turnover survey at 1500 GMT.
"While there will be little read across from the figures, expected at 7.52 million from a prior 7.44 million, to Friday's nonfarm payrolls print, the JOLTS data is also less likely to have been skewed by the impacts of October's adverse weather, given that the survey reflects labour conditions as they were on the last day of the month, as opposed to the nonfarm payrolls print pertaining to the week containing the 12th," Pepperstone analyst Michael Brown commented.
The US appears on track to hit its long-term target of 2% inflation despite a recent uptick, three Federal Reserve officials said Monday, with one indicating tentative support for another rate cut this month.
Despite the short-term uncertainty about inflation, the data still points to another rate cut as the best course of action this month, Fed Governor Christopher Waller told a conference in Washington.
"At present I lean toward supporting a cut to the policy rate at our December meeting," he said, noting that many people still expected inflation to fall to the Fed's 2% target over the medium term.
Speaking in the New York borough of Queens on Monday, New York Fed President John Williams said inflation was now "within striking distance" of 2%.
"Monetary policy remains in restrictive territory to support the sustainable return of inflation to our 2% goal," he continued, according to prepared remarks.
In an essay published earlier Monday, Atlanta Fed President Raphael Bostic said the Fed's inflation fight remained on track, while expressing more caution about the best course of action.
"I believe inflation remains on a path, albeit a bumpy one, toward the Committee's objective of 2%," said Bostic, who is a voting member this year on the Fed's rate-setting committee.
Tuesday's local corporate calendar sees results from train stations and airport concessions operator SSP Group, sandwich and salads maker Greencore, package holiday seller On the Beach and high-performance polymer supplier Victrex.
By Eric Cunha, Alliance News news editor
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