1st Jul 2025 06:46
(Alliance News) - London's FTSE 100 is set to open higher on Tuesday, as new data shows a boost in UK shop prices in June and the US looks to resume trade talks with Canada.
IG says futures indicate the FTSE 100 to open up 7.9 points, 0.1%, at 8,768.86 on Tuesday. The index of London large-caps closed down 37.95 points, 0.4%, at 8,760.96 on Monday.
UK shop prices rose in June for the first time in almost a year, pushed up by higher food costs and mounting pressure from government-imposed expenses, the British Retail Consortium said.
According to the latest BRC-NielsenIQ shop price index, overall shop price inflation hit 0.4% in June, reversing a 0.1% decline in May and marking the highest reading since July 2023.
This was above the three-month average of 0.1%. BRC Chief Executive Helen Dickinson said retailers are beginning to pass on the costs introduced in the autumn 2024 budget, including rises in employer national insurance contributions and the national living wage.
Sterling was quoted at USD1.3743 early Tuesday, up from USD1.3701 at the London equities close on Monday.
The euro traded at USD1.1787 early Tuesday, lower than USD1.1747 late Monday. Against the yen, the dollar was quoted down at JPY143.64 versus JPY144.31.
BT Group PLC subsidiary Openreach has added a further 21 locations to its full fibre broadband rollout as part of a plan to connect up to five million more UK homes and businesses by next March, the company announced.
The subsidiary of the London-based telecommunications company said new locations cover around 80,000 rural and urban premises across the country. The company is reaching an average of 85,000 new premises every week.
In the US on Monday, Wall Street ended in the green, with the Dow Jones Industrial Average 0.6% higher, the S&P 500 up 0.5% and the Nasdaq Composite also up 0.5%.
The yield on the US 10-year Treasury was quoted at 4.20%, narrowing from 4.27% on Monday. The yield on the US 30-year Treasury was quoted at 4.75%, narrowing from 4.82% on Monday.
US senators were in a marathon session of amendment votes on Monday as Republicans sought to pass President Trump's flagship spending bill.
Senators are divided over provisions that would strip around USD1 trillion in subsidised health care from millions of the poorest Americans and add more than USD3.3 trillion to the nation's budget deficits over a decade.
Trump wants to have the package on his desk by the time Independence Day festivities begin on Friday, however, progress in the Senate slowed and continued into Tuesday morning as lawmakers proposed unlimited amendments in the so-called "vote-a-rama" session.
Meanwhile, an economic adviser to US President Donald Trump has said that trade talks will resume immediately with Canada after Ottawa decided to rescind its digital services tax on US tech companies.
"Oh, absolutely," Kevin Hassett told Fox News on Monday when asked if negotiations would now take place.
"One of the things that the president asked for was that they would take the DST tax off. It's something that they've studied and now they've agreed to and for sure, that means that we can get back to negotiations."
Canada decided to withdraw the DST "in anticipation of a mutually beneficial comprehensive trade arrangement with the US," a statement from the Canadian Finance Ministry said on Sunday.
Canadian Prime Minister Mark Carney and Trump are hoping to find an agreement by July 21, the statement added.
In Asia on Tuesday, the Nikkei 225 index in Tokyo faded 1.0%. In China, the Shanghai Composite rose 0.3%, while the Hang Seng index in Hong Kong fell 0.9%. The S&P/ASX 200 in Sydney closed 0.1% higher.
Gold was quoted at USD3,329.61 an ounce early Tuesday, higher than USD3,286.04 on Monday.
Brent oil was trading at USD66.34 a barrel early Tuesday, lower than USD66.42 late Monday.
In Tuesday's corporate calendar, full-year results from Augmentum Fintech, Supreme and half-year results from Wynnstay Group.
In the economic calendar on Tuesday, a slew of manufacturing PMIs including releases in the UK, eurozone and US plus eurozone inflation figures.
By Emily Parsons, Alliance News reporter
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