28th Apr 2025 06:58
(Alliance News) - Stocks in London are set to open slightly lower on Monday, following a new forecast that UK economic growth could slow sharply over the next two years as US tariffs affect spending and investment.
About 16% of UK goods exports go to the US, meaning the new tariff rate will directly impact UK growth by squashing demand for products, EY Item Club said in a new report. But the bigger hit is set to come from the indirect impact of new policy on a weaker global economic backdrop and spiralling levels of uncertainty.
This is predicted to weigh on consumers who remain in a "cautious mood" following the cost-of-living crisis, and will likely continue putting big spending decisions on hold.
IG says futures indicate the FTSE 100 to open down 1.3 points on Monday. The index of London large-caps closed up 0.1% at 8,415.25 on Friday.
Sterling was quoted at USD1.3322 early Monday, higher than USD1.3313 at the London equities close on Friday.
The euro traded at USD1.1377 early Monday, higher than USD1.1372 late Friday. Against the yen, the dollar was quoted lower at JPY143.45 versus JPY143.88.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.7% and the Nasdaq Composite up 1.3%.
In Asia on Monday, the Nikkei 225 index in Tokyo was up 0.4%. In China, the Shanghai Composite was down 0.80 points, while the Hang Seng index in Hong Kong was up 0.2%. The S&P/ASX 200 in Sydney closed up 0.5%.
Gold was quoted at USD3,294.33 an ounce early Monday, higher than USD3,279.17 on Friday.
Brent oil was trading at USD66.10 a barrel early Monday, lower than USD66.68 late Friday.
In Monday's corporate calendar there are full-year results from AOTI, Elixirr International and Frenkel Topping.
In the economic calendar on Monday, the US Dallas Fed manufacturing index comes out at 1030 EDT.
By Emma Curzon, Alliance News reporter
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