London pre-open: Stocks to nudge up ahead of Fed announcement

(Sharecast News) - London stocks were set to nudge higher at the open on Wednesday as investors eyed the latest policy announcement from the Federal Reserve. The FTSE 100 was called to open around five points higher.

Danske Bank said: "We expect an unchanged rate decision which is also fully priced in the markets, but all eyes will be on Powell's communication about the outlook for further rate cuts as well as the updated rate and economic projections.

"The Fed could also provide signals about further tapering or even completely ending QT over coming months."

Investors will also be mulling the latest policy announcement from the Bank of Japan, which kept the policy rate at 0.5% as expected.

"They highlighted that exchange rate developments are, compared to the past, more likely to affect prices," Danske said.

"The market reaction to the decision was muted. With the outlook for another significant wage bump this year, we anticipate the BoJ will find room to hike rates again in July."

In UK corporate news, Rio Tinto has asked shareholders to vote against a resolution from hedge fund Palliser Capital to review the mining giant's dual listing in London and Sydney, calling it "value destructive".

Palliser wants an Australia-only listing, claiming it would boost Rio's share price.

"A dual-listed companies structure unification is not required to provide the group with strategic flexibility," Rio Tinto said.

Pfizer has fully exited its investment in UK-listed pharma group Haleon, selling off its remaining 7.3% stake for £2.5bn.

The transaction marks an "important milestone" for Haleon, according to chief executive Brian McNamara, with Pfizer having held a 32% stake at the time of Haleon's demerger from GSK in July 2022.

"Nearly three years on from demerger, Haleon is in a position of strength and is well placed to capitalise on the significant opportunities ahead," he said.