12th Nov 2025 06:54
(Alliance News) - Stocks in London are set to open marginally higher on Wednesday, as investors assess signs of improving UK business sentiment.
IG says futures indicate the FTSE 100 to open up 4.1 points, less than 0.1%, at 9,903.70 on Wednesday. The index of London large-caps had closed up 1.2% at 9,899.60 on Tuesday.
Confidence among UK businesses improved in October, though optimism remained below the levels seen during 2023 and 2024, a report on Wednesday showed.
The latest S&P Global UK business outlook survey indicated that sentiment strengthened from June, reaching its highest level in a year, even as profit expectations "remain subdued" amid persistent cost pressures.
The net balance of UK companies expecting an increase in output over the next 12 months rose to positive 33% in October, slightly up from positive 32% in June.
S&P Global said this marks a "modest improvement" from the recent low of 25% recorded in February, though confidence remains weaker than the long-term average observed over the past 16 years.
Both the services and manufacturing sectors recorded a "slight uptick" in overall business confidence, S&P Global added, with expectations for future demand gradually improving.
Meanwhile, Keir Starmer will face MPs at Prime Minister's Questions after a briefing war in which his allies insisted he is ready to fight off challenges to his leadership.
Health Secretary Wes Streeting, who has denied plotting to oust the UK prime minister in a coup, will also be in the public eye on Wednesday – facing the media morning round and later speaking at a health conference.
A cloak-and-dagger briefing war emerged on Tuesday night, in which allies of the prime minister came out fighting on his behalf amid fears his job could be under threat in as little as two weeks' time, after the budget.
A spokesman for Streeting was forced to deny reports that he has a group of some 50 Labour frontbenchers ready to walk away from government should the November 26 financial statement land badly.
Reporting over the last week has suggested a growing number of Labour MPs are unhappy with the prime minister's performance and the party's poll ratings, and are plotting a coup.
Sterling was quoted at USD1.3137 early Wednesday, down from USD1.3173 at the London equities close on Tuesday.
The euro traded at USD1.1580, slightly lower than USD1.1594 late Tuesday, while against the yen, the dollar rose to JPY154.65 from JPY154.02.
In the US on Tuesday, Wall Street ended mixed. The Dow Jones Industrial Average rose 1.2%, the S&P 500 added 0.2%, while the Nasdaq Composite slipped 0.3%.
The US Supreme Court extended a pause on requiring the administration of President Donald Trump to pay food benefits during the federal shutdown, amid signs Congress was moving forward with reopening the government.
Meanwhile, political developments in Washington remained in focus as the US Supreme Court extended a pause on requiring President Donald Trump's administration to pay food benefits during the ongoing federal shutdown.
The decision came as Congress appeared to be making progress toward reopening the government.
A lower court had ruled last week that the administration must fully fund the Supplemental Nutrition Assistance Program, or SNAP, for November by the end of Friday.
However, Justice Ketanji Brown Jackson issued an administrative stay, temporarily halting the order to allow more time for consideration of the government's appeal to delay the payments.
After New York markets closed, Advanced Micro Devices shares traded higher in after-hours trading as the chipmaker outlined mid-term financial targets and longer-term plans to expand its leadership in data centre and artificial intelligence technologies.
Chair & Chief Executive Lisa Su said AMD has "never been better positioned" and is entering "a new era of growth fuelled by our leadership technology roadmaps and accelerating AI momentum."
The comments came during AMD's financial analyst day, where the company presented its long-term strategy, product portfolio and intellectual property roadmap.
In Asia on Wednesday, markets were mostly higher. The Nikkei 225 in Tokyo rose 0.4%, the Shanghai Composite in China edged up 0.1%, and the Hang Seng Index in Hong Kong gained 0.8%. The S&P/ASX 200 in Sydney, however, closed down 0.2%.
Gold was quoted at USD4,117.10 an ounce early Wednesday, up slightly from USD4,108.75 on Tuesday.
Brent oil traded at USD64.94 a barrel, down from USD65.19 late Tuesday.
In Wednesday's corporate calendar, Avon Technologies reports full-year results, while Experian, Fuller, Smith & Turner, Picton Property Income, Volex, and SSE all issue half-year results. Trading statements are due from Marshalls, Regional REIT, and Taylor Wimpey.
In the economic calendar, German consumer price index figures are due at 0700 GMT.
By Eva Castanedo, Alliance News reporter
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