20th Jan 2025 06:58
(Alliance News) - Stocks in London are set to open lower on Monday, following news that China will leave key interest rates unchanged and ahead of Donald Trump's US presidential inauguration.
"Although Trump will start with some very visible tariffs against China and possibly Canada and Mexico, we expect him to rely more on threats of import duties to come than on big upfront tariffs to commence negotiations with the European Union," commented Berenberg's Holger Schmieding, who also noted: "Trump has chosen some notable China hawks for key defence and foreign policy positions."
IG says futures indicate the FTSE 100 to open down 18.3 points, 0.2%, at 8,486.92 on Monday. The index of London large-caps closed 1.4% higher at 8,505.22 on Friday.
Sterling was quoted at USD1.2210 early Monday, higher than USD1.2189 at the London equities close on Friday.
The euro traded at USD1.0305 early Monday, higher than USD1.0292 late Friday. Against the yen, the dollar was quoted at JPY156.19, lower versus JPY156.34.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.8%, the S&P 500 up 1.0% and the Nasdaq Composite up 1.5%.
US financial markets are closed on Monday for Martin Luther King, Jr. Day.
In Asia on Monday, the Nikkei 225 index in Tokyo was up 1.2%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 1.8%. The S&P/ASX 200 in Sydney closed up 0.5%.
Gold was quoted at USD2,710.29 an ounce early Monday, lower than USD2,715.22 on Friday.
Brent oil was trading at USD79.60 a barrel early Monday, lower than USD80.05 late Friday.
In Monday's corporate calendar, Midwich Group has a trading update scheduled.
In the economic calendar on Monday, look out for producer price inflation from Germany.
By Emma Curzon, Alliance News reporter
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