13th Jan 2026 06:58
(Alliance News) - Stocks in London are set to open slightly lower on Tuesday, as markets look ahead to US banks kicking off earnings season and the release of US inflation data, after largely shrugging off concerns over President Donald Trump's latest attack on Federal Reserve independence.
IG says futures indicate the FTSE 100 to open marginally lower, down 4.5 points at 10,136.90 on Tuesday. The index of London large-caps closed up 0.2% at 10,140.70 on Monday.
Banks commence the US earnings season, with JPMorgan Chase and Delta Air Lines reporting later on Tuesday, followed by Citigroup on Wednesday and Goldman Sachs on Thursday. The US is also due to release its latest consumer price inflation data.
Concern around US monetary policy intensified after a Justice Department probe into Federal Reserve Chair Jay Powell galvanised senior Fed figures to push back against US President Donald Trump's attacks.
Former Federal Reserve chiefs sharply criticised the criminal investigation into Powell, calling it an "unprecedented attempt" to undermine the central bank's independence.
"This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly," the statement added.
Two Republican senators also rebuked the Trump administration and questioned the credibility of the Justice Department in targeting Powell, whom Trump has long sought to replace as part of his push for lower interest rates.
Sterling was quoted at USD1.3466 early Tuesday, slightly lower than USD1.3468 at the London equities close on Monday. The euro traded at USD1.1655 early Tuesday, lower than USD1.1677 late Monday. Against the yen, the dollar was quoted at JPY158.95, up compared with JPY158.12 previously.
Brent oil was trading at USD64.16 a barrel early Tuesday, higher than USD63.55 late Monday.
Turmoil in Iran and Venezuela remained in focus for oil markets.
Trump announced a 25% tariff on any country trading with Iran, escalating pressure on Tehran over its violent crackdown on widespread protests.
"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the US of America. This Order is final and conclusive," Trump said on Truth Social.
Trump is also expected to meet Venezuelan opposition leader Maria Corina Machado on Thursday, according to media reports. The visit is set to take place at the White House, CNN, CBS News and Politico reported, citing sources familiar with the matter.
Meanwhile, Venezuela's interim government said it was ready to pursue a "new agenda" with the European Union and the UK following talks with their envoys after Nicolas Maduro was ousted as president. Foreign Minister Yvan Gil called for "opening channels of dialogue" with the EU, which has not recognised Maduro as Venezuela's legitimate leader. Discussions covered energy, education, science, technology and pharmaceuticals.
In New York on Monday, Wall Street ended higher, with markets shrugging off concerns over Trump's threats to Fed independence. The Dow Jones Industrial Average rose 0.2%, the S&P 500 added 0.2%, and the Nasdaq Composite gained 0.3%.
In Asia on Tuesday, markets were mostly higher. The Nikkei 225 in Tokyo surged 3.0%. In China, the Shanghai Composite fell 0.5%, while the Hang Seng Index in Hong Kong edged up 0.5%. The S&P/ASX 200 in Sydney closed up 0.6%.
"In Japan, markets are shining as reports that PM Takaichi may dissolve the lower house and call a snap election boost sentiment. A strong victory could unlock greater fiscal stimulus, giving rise to what some are calling the "Takaichi rally." Tech stocks are leading gains," said Ipek Ozkardeskaya, senior analyst at Swissquote.
Separately, Japan's current account surplus rose more than expected in November, official data showed. According to preliminary balance of payments figures from the Ministry of Finance, the surplus increased 10% year-on-year to JPY3.674 trillion, or around USD23.22 billion, from JPY3.339 trillion a year earlier.
The figure beat the FXStreet-cited consensus forecast of JPY3.594 trillion. On a month-on-month basis, the surplus rose 30% from JPY2.834 trillion in October.
In corporate news, UBS Group Chief Executive Sergio Ermotti plans to step down in April 2027, the Financial Times reported in an exclusive on Tuesday.
Ermotti, 65, returned to the Zurich-based lender in 2023 after previously serving as chief executive from 2011 to 2020, overseeing the bank during the aftermath of its rescue of Credit Suisse.
According to the FT, the board has yet to finalise the timing of Ermotti's departure. The newspaper reported that President of Asset Management Aleksandar Ivanovic has emerged as the leading internal candidate to succeed him.
Gold was quoted at USD4,578.60 an ounce early Tuesday, lower than USD4,621.38 on Monday, easing back after hitting a record high above the USD4,600 mark.
In Tuesday's corporate calendar, trading updates are due from Grafton Group, Gym Group, Hunting, PageGroup, Persimmon and SIG, plus Games Workshop Group reports interim results.
In the economic calendar on Tuesday, data due include the US business optimism index, Ireland retail sales, US consumer price inflation, the US Redbook index and the US monthly budget statement.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.