1st Sep 2025 06:59
(Alliance News) - London blue chips are set to open broadly unchanged on Monday, as investors weigh potential VAT hikes for UK businesses and a ruling across the pond sees US President Donald Trump's tariffs declared illegal.
IG says futures indicate the FTSE 100 to open up 2.1 points, less than 0.1%, at 9,189.44 on Monday. The index of London large-caps closed down 29.48 points, 0.3%, at 9,187.34 on Friday.
Sterling was quoted higher at USD1.3525 early Monday, against USD1.3510 at the London equities close on Friday.
The euro traded at USD1.1714 early Monday, up from USD1.1699 late Friday. Against the yen, the dollar was quoted broadly flat at JPY146.93 versus JPY146.92.
UK Chancellor Rachel Reeves is in talks to raise the value added tax threshold for businesses in a bid to boost growth, The Telegraph reported Saturday.
Whitehall officials reportedly raised the prospect of lifting the VAT registration threshold from the current level of GBP90,000 at meetings before summer recess. Businesses that have a turnover of below GBP90,000 per year are exempt from charging their customers VAT.
In Asia on Monday, the Nikkei 225 index in Tokyo shed 1.5%. In China, the Shanghai Composite improved 0.3%, while the Hang Seng index in Hong Kong rose 2.0%. The S&P/ASX 200 in Sydney lost 0.5%.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average edging down 0.2%, the S&P 500 falling 0.6% and the Nasdaq Composite fading 1.2%.
US financial markets will be closed on Monday for Labor Day.
A US appeals court on Friday ruled that many of President Trump's tariffs, which have upended global trade, were illegal – but allowed them to remain in place for now, giving him time to take the fight to the Supreme Court.
The 7-4 ruling by the US Court of Appeals for the Federal Circuit affirmed a lower court's finding that Trump had exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.
But the judges allowed the tariffs to stay in place through mid-October. Friday's case, however, does not deal with sector-specific tariffs that the Trump administration has also imposed on steel, aluminium, autos and other imports.
Brent oil was trading at USD67.16 a barrel early Monday, lower than USD67.41 late Friday. Gold was quoted at USD3,476.03 an ounce early Monday, higher than USD3,445.38 on Friday.
The Telegraph on Sunday reported Hunting will shut down 80% of its UK operations. The London-based supplier of equipment to the oil and gas industry will close four of its five UK centres including its main Scottish site, Chief Executive Officer Jim Johnson reportedly said.
CEO Johnson said the closures were linked to UK government windfall taxes and net-zero regulations. The energy profits levy, also known as windfall tax on oil and gas companies, has a headline rate of 78%.
In Monday's corporate calendar, a trading statement from Workday partner and provider of IT services, Kainos Group, and half year results from leisure and entertainment company, XP Factory.
In the economic calendar on Monday, a slew of manufacturing PMI releases, eurozone unemployment figures, and UK mortgage approvals data.
By Emily Parsons, Alliance News reporter
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