(Alliance News) - Stocks in London are set to open slightly higher on Wednesday, after a positive close on Wall Street and mixed trade in Asia.

IG says futures indicate the FTSE 100 to open up 6.3 points, or 0.1%, at 7,687.31. The index closed up 68.15 points, or 0.9%, at 7,681.01 on Tuesday. London's large-cap stock measure had been on a four-day losing streak ahead of Tuesday's session.

Sterling was quoted at USD1.2603 early Wednesday, up from USD1.2590 at the London equities close on Tuesday. The euro traded at USD1.0758, up from USD1.0749. Against the yen, the dollar was quoted at JPY148.04, hardly changed from JPY148.09.

In New York on Tuesday, the Dow Jones Industrial Average closed up 141.24 points, 0.4%, at 38,521.36. The S&P 500 closed up 0.2% and the Nasdaq Composite up 0.1%

In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.1%. In China, the Shanghai Composite was up 0.9%, while the Hang Seng index in Hong Kong was down 0.3%. The S&P/ASX 200 in Sydney closed up 0.5%.

Michael Hewson, chief market analyst at CMC Markets UK, noted "an undercurrent of optimism that the Chinese government might be on the cusp of signalling a new stimulus package in the lead up to Chinese New Year, which starts this weekend."

He added: "A modest rebound in bond markets which pulled yields down from their recent highs also helped the more positive mood, along with a pullback in the US dollar."

Gold was quoted at USD2,032.50 an ounce early Wednesday in London, slightly down on USD2,036.43 late Tuesday. Brent oil was trading at USD78.62 a barrel, flat from USD78.57.

Headlining Wednesday's corporate calendar in London are half-year results from Barratt Developments, Ashmore Group, PZ Cussons and Smurfit Kappa.

In the economic calendar on Wednesday, the Halifax house prices index is due before the London market open. At 1330 GMT, the US trade balance is due. At 1900 GMT, US Fed Reserve Governor Michelle Bowman is due to speak.

By Tom Waite, Alliance News editor

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