7th Aug 2025 06:54
(Alliance News) - London's FTSE 100 is called to open lower on Thursday, as US President Donald Trump plans to levy a 100% tariff on chips and semiconductors, and as new data shows exports from China expanded in July.
IG says futures indicate the FTSE 100 to open down 6.3 points, 0.1%, at 9,158.01 on Thursday. The index of London large-caps closed up 21.58 points, 0.2%, at 9,164.31 on Wednesday.
Sterling was quoted at USD1.3366 early Thursday, higher than USD1.3343 at the London equities close on Wednesday.
The euro traded at USD1.1670 early Thursday, up from USD1.1639 late Wednesday. Against the yen, the dollar was quoted slightly lower at JPY147.30 versus JPY147.34.
The typical first-time buyer monthly mortgage payment has fallen by almost GBP100 from a year ago, Rightmove analysis showed on Thursday.
The Milton Keynes, England-based real estate portal operator said the average first-time buyer mortgage payment is currently GBP909 per month, down 9.3% from GBP1,002 per month last year.
Rightmove said the analysis is based on the typical first-time buyer property sector of two-bedrooms or fewer homes, and a deposit size of 20%, with mortgage costs spread over 30 years.
It noted that the average two-year fixed mortgage rate for someone with a 20% deposit has lowered to 4.38% from 5.21% this time last year.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average gaining 0.2%, the S&P 500 advancing 0.7% and the Nasdaq Composite rising 1.2%.
The yield on the US 10-year Treasury was at 4.25%, widened from 4.22%. The yield on the US 30-year Treasury was 4.83%, stretched from 4.81%.
US President Donald Trump said Wednesday he planned to impose a 100% tariff on imported semiconductors, although he did not offer a timetable for the new levy being enacted.
"We're going to be putting a very large tariff on chips and semiconductors," he told reporters at the White House, adding that level would be "100%".
In Asia on Thursday, the Nikkei 225 index in Tokyo improved 0.6%. In China, the Shanghai Composite edged up 0.2%, while the Hang Seng index in Hong Kong rose 0.5%. The S&P/ASX 200 in Sydney lost 0.2%.
China's exports expanded 7.2% year-on-year in July, official data from the General Administration of Customs revealed Thursday, as the world's second-largest economy navigated a shaky trade war truce with the US.
The increase in China's overseas shipments last month outpaced a Bloomberg forecast of 5.6%. Imports jumped 4.1% year-on-year in July, compared with a Bloomberg forecast of a 1% fall.
China's trade surplus fell to USD98.24 billion in July from USD114.77 billion a month earlier.
Data also showed that China's exports to the US, its largest trading partner, continued to fall, sinking 6.1% from the previous month.
Gold was quoted down at USD3,374.53 an ounce early Thursday, against USD3,375.48 on Wednesday.
Brent oil was trading at USD67.23 a barrel early Thursday, lower than USD68.31 late Wednesday.
In Thursday's corporate calendar, half year results from bookmaker Flutter Entertainment, hotel operator InterContinental Hotels Group and advertising group WPP.
In the economic calendar on Thursday, there will be Halifax house price data for July out shortly, followed by a UK interest rate decision and weekly jobless claims data in the US.
By Emily Parsons, Alliance News reporter
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