2nd Dec 2025 06:58
(Alliance News) - Stocks in London are set to open lower on Tuesday, following a soft lead from Wall Street.
IG says futures indicate the FTSE 100 to open 17.9 points lower, or 0.2%, at 9,684.63 on Tuesday. The index of London large-caps closed 0.2% lower at 9,702.53 on Monday.
The UK Office for Budget Responsibility was thrown into fresh turmoil on Monday as Chair Richard Hughes resigned following the early publication of the watchdog's forecasts. Hughes said he was stepping down to allow the OBR to "quickly move on from this regrettable incident".
His decision follows the release of a report that described the leak as "the worst failure in the 15-year history of the OBR", strongly criticising its procedures for safeguarding confidential material. In a letter to the chancellor and the chair of the Commons Treasury Committee, Hughes said he took "full responsibility" for "the shortcomings identified in the report".
Sterling was quoted at USD1.3209 early Tuesday, lower than USD1.3227 at the London equities close on Monday. The euro traded at USD1.1606 early Tuesday, lower than USD1.1625 late Monday. Against the yen, the dollar was quoted at JPY155.80 versus JPY155.28.
"Sentiment was shaky as the final month of the year got underway yesterday, with stocks wobbling, the dollar dipping, and Treasuries softening across the curve," said Michael Brown, senior research strategist at Pepperstone.
"Once again, though, and in keeping with some of the risk aversion that we saw at times last month, there wasn't any particularly obvious catalyst behind the slide seen across the global equity complex yesterday," he added.
In New York on Monday, equities closed lower. The Dow Jones Industrial Average fell 0.9%, the S&P 500 lost 0.5%, and the Nasdaq Composite slipped 0.4%.
Brown noted that "the sell-off across a substantially steeper Treasury curve was notable, and probably reflects renewed concerns over the Fed's policy independence, especially amid growing chatter that Kevin Hassett is likely to get the nod as Trump's pick to succeed Jay Powell as Chair."
Geopolitical tensions surged as the White House said it was "very optimistic" of progress toward ending the Russia-Ukraine war, while Russia claimed fresh battlefield gains. US envoy Steve Witkoff will travel to Moscow for talks with President Vladimir Putin, Press Secretary Karoline Leavitt said, adding that President Trump and his team "really want to see this war come to an end."
Ukrainian President Volodymyr Zelensky said he expected to discuss "key issues" with Trump, while Ukraine's negotiator Rustem Umerov cited "significant progress" in US-led talks, though "challenging" issues remain.
Meanwhile, Russia said its forces had captured the city of Pokrovsk in eastern Ukraine, a key logistics hub, along with Vovchansk in the northeast, escalating pressure on Kyiv amid ongoing negotiations.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 0.1%. In China, the Shanghai Composite was donw 0.5%, while the Hang Seng index in Hong Kong was marginally higher. The S&P/ASX 200 in Sydney closed up 0.2%.
Gold was quoted at USD4,208.30 an ounce early Tuesday, lower than USD4,236.80 on Monday.
Brent oil was trading at USD63.18 a barrel early Tuesday, higher than USD63.03 late Monday.
Silver extended its record-breaking rally, touching a fresh peak on Monday as tight global supplies buoyed prices. The white metal climbed as high as USD58.84 an ounce after surging nearly 6% on Friday. Early Tuesday, it was trading at USD57.11.
In Tuesday's corporate calendar, half-year results are expected from Augmentum Fintech, discoverIE Group, Foresight Group, IG Design Group, Mercia Asset Management, NewRiver REIT, Severfield, System1 Group, TPXimpact Holdings and Vianet Group.
Full-year earnings are due from Gooch & Housego, On the Beach Group, Topps Tiles and Victrex.
In the economic calendar on Tuesday, releases include the UK Nationwide House Price Index, the Bank of England financial stability report, France's budget balance, Spain's unemployment, and eurozone inflation and unemployment figures.
By Eva Castanedo, Alliance News reporter
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