8th Oct 2024 06:52
(Alliance News) - Stocks in London are set to open lower on Tuesday, following most Asian market into the red, on a lack of new stimulus in China.
IG says futures indicate the FTSE 100 to open 50.9 points lower, 0.6%, at 8,252.72 on Tuesday. The index of London large-caps closed up 22.99 points, 0.3%, to 8,303.62 on Monday.
China said on Tuesday it was "fully confident" of hitting its growth target this year but held off announcing more stimulus measures, leaving markets disappointed.
Beijing has struggled to reignite business activity as officials target around 5% expansion, which analysts say is optimistic given the numerous headwinds, from a prolonged housing crisis to sluggish consumption and local government debt.
All eyes were on a news conference led by Zheng Shanjie, head of China's National Development & Reform Commission, on Tuesday, and investors hoped Beijing would unveil more economy-boosting policies.
But Zheng and colleagues refrained from laying out any new stimulus, instead reiterating that "the fundamentals of our country's economic development have not changed".
In China, the Shanghai Composite was up 4.2% as traders returned to desks following the Golden Week. The index had jumped around 10% at the open, before paring gains.
"The reopening surge from the week-long holiday barely had time to gather steam before fizzling out, and now the once-thrilled bulls are licking their wounds," SPI Asset Management analyst Stephen Innes commented.
In Hong Kong, the Hang Seng was down 6.8%. Tokyo's Nikkei 225 was 1.1% lower, while the S&P/ASX 200 in Sydney fell 0.4%.
In New York on Monday, the Dow Jones Industrial Average fell 0.9%, the S&P 500 lost 1.0% and the Nasdaq Composite shed 1.2%.
The pound was quoted at USD1.3092 early Tuesday in London, rising from USD1.3082 at the time of the European equities close on Monday. The euro firmed to USD1.0984 from USD1.0978. Against the yen, the dollar was trading at JPY147.88, down from JPY148.03.
Brent oil was quoted at USD79.52 a barrel, dropping from USD80.41. Gold was quoted at USD2,642.91 an ounce, falling from USD2,649.60.
Tuesday's local corporate calendar sees a trading statement from tobacco seller Imperial Tobacco and provider of student accommodation, Unite.
The economic diary has a German industrial production reading at 0700 BST, and US trade data at 1330 BST.
By Eric Cunha, Alliance News news editor
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