23rd Oct 2025 06:58
(Alliance News) - Stocks in London are set to open lower on Thursday, replicating losses seen in Asia and on Wall Street overnight, as investors digest fresh sanctions on Russia and corporate earnings from major US firms.
IG says futures indicate the FTSE 100 to open lower 4.1 points lower, or 0.1% at 9,519.10 on Thursday. The index of London large-caps closed at 9,5151.00 on Thursday.
Sterling was quoted at USD1.3341 early Thursday, down from USD1.3366 at the London equities close on Wednesday.
The euro traded at USD1.1599, slightly lower than USD1.1610 late Wednesday, while against the yen, the dollar strengthened to JPY152.32 from JPY151.78.
"It ended up being a bit of a wearisome Wednesday for financial markets yesterday, amid rather turgid trading conditions and (again) a distinct lack of fresh data or news flow," said Michael Brown, senior research strategist at Pepperstone.
Brent oil was trading at USD64.93 a barrel early Thursday, up from USD62.61 late Wednesday, as the US and EU imposed new sanctions on Russia's energy sector.
US President Donald Trump announced sanctions against Russia's two largest oil producers, Rosneft and Lukoil, on Wednesday, complaining that his talks with President Vladimir Putin over the Ukraine war "don't go anywhere."
Trump said he hoped the "tremendous sanctions" would be short-lived, adding: "We hope that the war will be settled."
Speaking alongside NATO Secretary General Mark Rutte at the White House, Trump said his patience had "snapped" after plans for a fresh summit with Putin in Budapest fell through. Rutte, often dubbed "the Trump whisperer," said he was confident that "with sustained pressure, we will be able to get Putin to the table to agree a ceasefire."
The EU also unveiled its 19th sanctions package since Russia's 2022 invasion, aimed at further constraining Moscow's oil and gas revenues.
The sanctions came hours after Russia's latest overnight barrage on Ukraine killed seven people – including two children – and ripped into a kindergarten.
US Secretary of State Marco Rubio said Wednesday evening that the US still wants to meet with the Russians, despite the sanctions.
In New York on Wednesday, Wall Street closed lower, with the Dow Jones Industrial Average down 0.7%, the S&P 500 down 0.5%, and the Nasdaq Composite falling 0.9%.
Tesla shares declined 3.8% in after hours trading on Wednesday after third quarter profit came in short of expectations, despite a beat on revenue, while deliveries climbed.
Netflix extended its losses with shares plunging 10%, following disappointing quarterly results on Tuesday that fell short of market expectations.
Net income in the three months to September fell to USD1.37 billion in the third quarter from USD2.17 billion a year earlier, while revenue rose 12% to USD28.10 billion from USD25.18 billion. Adjusted earnings per share fell to USD0.50, missing analyst forecasts of USD0.54.
In Asia on Thursday, the Nikkei 225 in Tokyo fell 1.7%, the Shanghai Composite in China was down 0.7%, and the Hang Seng Index in Hong Kong slipped 0.2%. The S&P/ASX 200 in Sydney closed marginally higher, up less than 0.1%.
Gold was quoted at USD4,090.40 an ounce early Thursday, up from USD4,028.64 late Wednesday.
"After a sharp decline of nearly USD380 from its record high of USD4,380 per ounce in just two sessions, gold has become the focal point of investor attention," said Linh Tran, market analyst at XS.com.
In Thursday's corporate calendar, Lloyds Banking Group, Antofagasta, AJ Bell and London Stock Exchange Group release trading statements, while Bloomsbury Publishing posts half-year results.
In the economic calendar, Canada retail sales and eurozone consumer confidence readings are due later in the day.
By Eva Castanedo, Alliance News reporter
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