London stocks were set to edge down at the open on Thursday as investors mulled the latest policy announcement from the US Federal Reserve and looked ahead to rate decisions from the Bank of England and European Central Bank.
The FTSE 100 was called to open 11 points lower at 7,485.
Overnight, the Fed hiked rates by 50 basis points, as expected, in a bid to tackle surging inflation. Although this marked a slowdown in hikes, with the Fed having lifted rates by 75 basis points at each of its last four policy meetings, the central bank also adjusted up its expectations for rate rises next year.
Chair Jerome Powell said: “Over the course of the year, we have taken forceful actions to tighten the stance of monetary policy.
“We have covered a lot of ground, and the full effects of our rapid tightening so far are yet to be felt. Even so, we have more work to do.”
Closer to home, rate announcements are due from the BoE at midday and from the ECB at 1215 GMT. Both are expected to lift rates by 50 basis points.
In corporate news, energy producer Drax said it expected full-year earnings to be slightly above the top of the range of analyst expectations on the back of higher prices and a strong pumped storage and hydro performance in the second half of 2022.
The company’s own compiled consensus for 2022 adjusted EBITDA was £668m, with a range of £651-£681m.
Elsewhere, electricals retailer Currys said it swung to a loss in the first half after its international business took a hit due to heavy discounting from competitors.
In the half to 29 October, the company swung to a statutory pre-tax loss of £548m from a profit of £48m in the same period a year earlier, and to an adjusted pre-tax loss of £17m, versus a profit of £45m. Revenues declined 7% to £4.5bn.
Currys said its performance in the UK & Ireland strengthened again, but the international segment was hit by temporary market disruption, as competitors discounted excess stock heavily.
