London’s stock market is anticipated to open slightly lower on Tuesday, with the FTSE 100 showing little response to a strong swell on Wall Street. Investors remain conservative amid growing prospects that the US Federal Reserve could cut interest rates.
Futures data from IG points to the FTSE 100 slipping 18.1 points, or 0.2%, to 9,516.81. On Monday, the UK’s top 100 companies had finished the session down 4.80 points at 9,534.91.
The pound held steady against the US dollar at USD 1.3104 in early trading, while the euro dropped slightly to USD 1.1518. The US bone
also eased against the yen to JPY 156.74.
US Treasury yields edged lower, with the 10- time note at 4.04% and the 30- time bond at 4.68%, reflecting the conservative mood in the bond requests.
Global Markets Show Mixed Signals
Requests in Asia were mixed. Tokyo’s Nikkei 225 remained flat, the Shanghai Composite gained 0.9%, Hong Kong’s Hang Seng rose 0.3%, and Sydney’s S&P/ ASX 200 added 0.1%.
Across the Atlantic, Wall Street enjoyed a strong launch to the week. The Dow Jones climbed 0.4%, the S&P 500 surged 1.6%, and the Nasdaq jumped 2.7%.
Pepperstone analyst Michael Brown said: “Sentiment remained solid as the fresh trading week got underway after a surprise Trump-Xi call, and a further dovish repricing of Fed policy expectations.
It proved a solid day for stocks, with ‘green on the screen’ across the board, and with benchmarks on Wall St likely helped by a further dovish repricing of Fed policy expectations (USD OIS now discounts an 85% chance of a Dec cut) after Governor [Christopher] Waller suggested his openness to such a move in an interview yesterday.
In fact, the rally saw both the S&P and Nasdaq notch their best days since back in May.”
FTSE 100 Outlook and UK Market Drivers
Goods were steady, with Brent crude slightly advanced at USD 62.96 a barrel and gold rising to USD 4,143.01 an ounce.
Tuesday’s profitable timetable includes German GDP numbers at 0700 GMT and the US patron price indicator at 1330 GMT.
In the UK, periodic results from contract caterer Compass and budget airline easyJet are anticipated to attract investor attention.
Looking further ahead, the limelight will be on Chancellor Rachel Reeves, who’s set to deliver her alternative budget in the House of Commons on Wednesday.
The Chancellor has prompted Labour MPs to unite behind her plans, which are widely anticipated to include duty increases to help address the UK’s public finance gap.
With investor confidence wavering and global requests jittery, judges say the FTSE 100 could see further oscillations in the coming days, particularly if news from the US and Europe alters prospects on interest rates or profitable growth.
