8th Aug 2025 06:56
(Alliance News) - London's FTSE 100 is set to open higher on Friday, as numbers showed a decline in UK retail footfall during July and the UK used car market rebounds near to pre-pandemic levels.
IG says futures indicate the FTSE 100 to open up 5.1 points, 0.1%, at 9,105.87 on Friday. The index of London large-caps closed down 63.54 points, 0.7%, at 9,100.77 on Thursday.
Sterling was quoted at USD1.3428 early Friday, higher than USD1.3412 at the London equities close on Thursday.
The euro traded at USD1.1642 early Friday, higher than USD1.1631 late Thursday. Against the yen, the dollar was quoted down at JPY147.35 versus JPY147.44.
"The US dollar remains under pressure from trade volatility, weak Treasury auctions, and dovish Fed expectations, though we're seeing a modest rebound in Asian trading. The EURUSD is consolidating after a 2% rally since the start of August," commented Swissquote analyst Ipek Ozkardeskaya.
"Meanwhile, sterling extended gains against both the euro and the dollar after the Bank of England delivered a hawkish rate cut. Four MPC members voted to keep rates unchanged, and with UK inflation expected to hit 4% in the coming months, prospects for a November rate cut have been mostly priced out.
"We've come full circle: rising inflation is again translating into currency strength, reversing the early-2025 dynamic where dovish central banks were seen as pro-growth. That shift is particularly relevant for the euro, which had previously rallied on hopes the [European Central Bank] would support growth."
UK retail footfall declined in July, but less sharply than in the previous month, as the summer failed to bring the boost that businesses had hoped for, according to the latest British Retail Consortium-Sensormatic data on Friday.
Total UK footfall decreased by 0.4% in July compared to the previous year, improving from the 1.8% fall seen in June.
High street visits fell by 1.7% while shopping centre footfall dropped by 0.3%. However, retail park activity increased by 1.7%, reversing a 1.1% slide last month.
Meanwhile, the UK's used car market has bounced back to near pre-pandemic levels, figures showed on Friday.
Around 4.0 million cars changed hands in the first half of 2025, the Society of Motor Manufacturers & Traders said. That is up 2.2% from a year earlier, and is only 37,274 transactions below the same period in 2019, before the coronavirus crisis began.
The UK's new car market grew by 3.5% to around 1.0 million units in the first half of 2025, but remained 18% below the level in 2019.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average shedding 0.5%, the S&P 500 losing 0.1% and the Nasdaq Composite rising 0.4%.
The yield on the US 10-year Treasury was at 4.25%, widened from 4.23%. The yield on the US 30-year Treasury was 4.83%, stretched from 4.80%.
US President Donald Trump on Thursday named the leader of his White House economic panel to fill a recently vacated seat on the Federal Reserve board, as he seeks to boost his sway over the independent central bank.
"It is my Great Honor to announce that I have chosen Dr Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026," he announced on his website, Truth Social.
"In the meantime, we will continue to search for a permanent replacement," Trump added.
Miran will finish out the term of Adriana Kugler, an appointee of former president Joe Biden who announced her resignation last week.
The personnel shift comes as the Fed faces intensifying pressure under Trump, who has repeatedly criticised the central bank's chief Jerome Powell for not lowering interest rates sooner.
In Asia on Friday, the Nikkei 225 index in Tokyo improved 2.0%. In China, the Shanghai Composite was marginally higher, while the Hang Seng index in Hong Kong faded 0.8%. The S&P/ASX 200 in Sydney fell 0.2%.
Gold was quoted at USD3,392.77 an ounce early Friday, higher than USD3,387.20 on Thursday.
Brent oil was trading at USD66.24 a barrel early Friday, lower than USD66.48 late Thursday.
In Friday's corporate calendar, half year results from building materials company Kingspan and Georgia-based lender TBC Bank Group.
In the economic calendar on Friday, Irish industrial production data.
By Emily Parsons, Alliance News reporter
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