30th Jan 2026 06:57
(Alliance News) - Stocks in London are set to open higher on Friday, as investors look ahead to President Donald Trump's announcement of the next Federal Reserve chair and a busy economic data calendar.
IG says futures indicate the FTSE 100 to open 8.2 points higher, 0.1% at 10,179.96 on Friday. The index of London large-caps closed up 0.2% at 10,171.76 on Thursday.
"A sudden surge in cross-asset vol sparked a violent unwind of several momentum trades yesterday, though the fundamental backdrop remains little changed. Today, a busy docket awaits, with weekend gapping risk also a consideration," said Michael Brown, senior research strategist at Pepperstone.
US President Donald Trump warned it would be "dangerous" for the UK to do business with China, as Keir Starmer moves to strengthen economic ties with Beijing on the final day of his visit.
Asked by reporters early on Friday about the UK's efforts to strengthen economic ties with China, Trump expressed disapproval.
"Well, it's very dangerous for them to do that, and it's even more dangerous, I think, for Canada to get into business with China," he said.
He added that Canada was doing "poorly" and said "you can't look at China as the answer".
The UK prime minister hailed "really good progress" on issues including tariffs during talks with Chinese leader Xi Jinping in Beijing. Starmer's visit to China is the first by a British premier since 2018 and follows a slew of Western leaders seeking a rapprochement with Beijing, pivoting from an increasingly unpredictable US.
Starmer, who is in China until Saturday, later told reporters the bilateral relationship was in "a strong place", with progress made on issues such as whisky tariffs.
Downing Street said whisky exported to China would now be subject to a 5% tariff, down from 10%. The Scotch Whisky Association welcomed the move, saying it "has the potential to re-energise exports" to what it called "a priority growth market".
Sterling was quoted at USD1.3755 early Friday, lower than USD1.3797 at the London equities close on Thursday.
The euro traded at USD1.1927 early Friday, lower than USD1.1950 late Thursday. Against the yen, the dollar was quoted at JPY153.88, higher versus JPY152.87.
A US government shutdown looked increasingly likely after Senate Democrats blocked a key vote to keep federal departments funded, escalating a standoff with the White House over US President Donald Trump's hardline immigration crackdown following the fatal shooting of two protesters.
The failed vote stalled a six-bill spending package that would fund more than three-quarters of the federal government, and a partial shutdown is set to begin after midnight Saturday.
Senators were expected to hold a second vote on a revised package, but even a successful outcome would still require approval by the House of Representatives, which is not due back from recess until Monday – more than two days after the Friday night deadline.
Trump is also set to announce his pick to chair the US Federal Reserve on Friday morning, a decision closely watched by markets. The 79-year-old told reporters he would announce his choice "tomorrow morning" upon arriving at the premiere of a documentary about his wife, First Lady Melania Trump. Kevin Warsh is widely seen as the frontrunner.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.1%, the S&P 500 down 0.1% and the Nasdaq Composite down 0.7%.
In corporate news, Apple shares rose 0.5% in after-hours trading after the company reported record fourth-quarter iPhone sales. Apple said revenue rose 16% year-on-year to USD143.8 billion, beating its own forecast.
Chief Executive Officer Tim Cook said: "iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment."
Services revenue climbed 14% to a record USD30.01 billion. Net income rose 16% to USD42.10 billion from USD36.33 billion, while diluted earnings per share increased to USD2.84 from USD2.40.
Chief Financial Officer Kevan Parekh forecast first-quarter revenue growth of between 13% and 16%, implying revenue of USD107.8 billion to USD110.66 billion, ahead of the LSEG consensus of USD104.84 billion.
In Asia on Friday, the Nikkei 225 index in Tokyo was marginally lower. Japan's unemployment rate was unchanged at 2.6% in December, matching both November's reading and the FXStreet-cited consensus. Preliminary data from the Ministry of Economy, Trade & Industry showed industrial production rose 2.6% year-on-year in December, accelerating from a 2.2% decline in November. O
n a monthly basis, industrial production fell 0.1%, beating expectations for a 0.4% fall. Retail sales weakened, declining 0.9% year-on-year in December from a 1.0% increase in November and missing the consensus forecast of a 0.7% rise. Month-on-month, retail sales fell 2.0% after a 0.6% increase in November.
In China, the Shanghai Composite was down 0.9%, while the Hang Seng index in Hong Kong was down 1.8%.
The S&P/ASX 200 in Sydney closed down 0.7%. In Australia, producer prices rose at a slower-than-expected pace in the fourth quarter of 2025. The final demand producer price index increased 0.8% quarter-on-quarter, easing from 1.0% in the previous quarter and below the FXStreet-cited consensus of 1.1%. Annual final demand PPI growth was unchanged at 3.5%.
Gold was quoted at USD5,158.10 an ounce early Friday, lower than USD5,256.30 on Thursday.
Brent oil was trading at USD68.34 a barrel early Friday, lower than USD69.40 late Thursday.
Meanwhile, the US Treasury Department eased sanctions on Venezuela's oil sector, as the Trump administration seeks to boost investment and production following the removal of Nicolas Maduro.
The Treasury issued a general licence allowing transactions involving Venezuela's government and state oil firm Petroleos de Venezuela related to the production, sale, transport and refining of Venezuelan-origin oil by established US entities.
In Friday's corporate calendar, Airtel Africa reports third-quarter results.
In the economic calendar on Friday, data due include France producer prices, Spain GDP and consumer price inflation, Germany unemployment, GDP and CPI, UK mortgage approvals, Ireland harmonised CPI, US producer prices and Canada producer prices.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.