17th Mar 2025 06:54
(Alliance News) - Stocks in London are set to open higher on Monday, after China announced new growth-boosting measures, and over in the US, a government shutdown was averted.
IG says futures indicate the FTSE 100 to open 12.1 points higher, 0.1%, at 8.644.43 on Monday. The index of London large-caps closed up 89.77 points, 1.1%, at 8,632.33 on Friday.
The pound climbed to USD1.2934 early Monday, from USD1.2920 at the time of the London equities close on Friday. The euro was steady at USD1.0879, while against the yen, the dollar rose to JPY148.86 from JPY148.34.
In China, the Shanghai Composite 0.2% higher, while the Hang Seng Index in Hong Kong was up 0.9%. In Tokyo, the Nikkei 225 added 1.0%. In Sydney, the S&P/ASX 200 closed up 0.8%.
China has unveiled an action plan it hopes will help Beijing to overcome stubbornly low consumer demand and meet its ambitious growth target, state news agency Xinhua reported.
The plan, issued on Sunday by the State Council, promises "special initiatives" to stimulate the world's second-largest economy, which has struggled to sustain a strong recovery since the Covid-19 pandemic.
The plan, organised into eight sections, "aims to promote reasonable wage growth by strengthening employment support in response to economic conditions", Xinhua reported.
It intends to grow incomes through property reform, including in rural areas where it calls for "exploring ways to unlock the values of houses legally owned by farmers", it added.
Mechanisms for stabilising the stock market and the development of financial products for individual investors are also being explored. Financial institutions will be encouraged to issue more personal consumption loans and set reasonable loan limits, terms and interest rates, Xinhua said.
Total retail sales in the world's second-largest economy increased 4.0% year-on-year in the first two months of 2025, matching consensus and accelerating from a 3.7% rise in December, the National Bureau of Statistics said.
Additionally, NBS reported that the urban unemployment rate edged up to 5.4% in February, increasing from 5.2% in January.
Gold was flat at USD2.989.11 an ounce, from USD2,988.54 late Friday afternoon. A barrel of Brent advanced to USD71.01 from USD70.32.
In New York on Friday, the Dow Jones Industrial Average surged 1.7%, the S&P 500 jumped 2.1% and the Nasdaq Composite soared 2.6%.
"Trade tensions between the US and China, along with other countries, have been a long-standing factor of market instability. President Trump's actions, such as imposing tariffs or threatening to do so in recent times, have caused negative reactions in the stock market. The absence of new announcements from President Trump on Friday helped ease concerns about escalating trade tensions," XS.com analyst Linh Tran commented.
"The US Senate's expected approval of a temporary spending bill helped avert the risk of a government shutdown. This provided stability and alleviated concerns about disruptions in government operations. Investors felt more reassured."
The US averted a government shutdown with hours to spare Friday as lawmakers already reeling from President Donald Trump's radical federal spending cuts voted to keep the lights on through September.
Facing a midnight deadline to fund the government or allow it to start winding down, Democrats dropped plans for a blockade on a Trump-backed bill passed earlier this week by the House – clearing its path for approval by the Republican-led Senate.
"In their typical fashion, Senate Democrats engaged in political theatre to delay the inevitable and cause instability," said Ted Cruz, chair of the Senate Commerce Committee.
"Americans voted for change under President Trump and Republican leadership after four years of chaos. The government is funded, let's get back to work."
In Monday's UK corporate calendar, Diversified Energy, F&C Investment Trust and Phoenix Group Holdings release full-year results.
The economic calendar for Monday has, from the US, retail sales and the US New York empire state manufacturing index.
By Eric Cunha, Alliance News news editor
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