7th Jul 2026 06:56
(Alliance News) - Stocks in London are set to open marginally higher on Tuesday, as investors monitor the start of the Nato summit and await UK house price data.
IG says futures indicate the FTSE 100 to open 12.8 points higher, 0.1%, at 10,664.57 on Tuesday. The index of London large-caps closed 0.3% lower at 10,651.77 on Monday.
Attention early Tuesday will turn to the UK, where the Halifax house price index is due at 0700 BST. House prices are expected to have risen 0.1% on-month in June after falling 0.1% in May.
Sterling was quoted at USD1.3384 early Tuesday, higher than USD1.3354 at the London equities close on Monday. Against the euro, sterling rose to EUR1.1707 from EUR1.1696 a day prior.
The euro traded at USD1.1432 early Tuesday, higher than USD1.1417 late Monday. Against the yen, the dollar was quoted at JPY161.84, lower versus JPY162.34.
The leaders of Nato's 32 member states have gathered in Ankara for two days of talks focused on boosting Europe's defence spending and military capabilities, alongside major arms procurement agreements.
The summit opens with a large defence industry fair aimed at helping allies translate rapidly rising military budgets into new capabilities and multibillion-dollar procurement deals.
Under pressure from US President Donald Trump, Nato members agreed last year to raise defence spending from 2.0% to 3.5% of gross domestic product by 2035, with a further 1.5% of GDP earmarked for defence-related expenditure. This year's summit is expected to focus on turning those pledges into concrete commitments.
Separately, Trump expressed optimism that efforts to end the war in Ukraine were making progress following a phone call with Russian President Vladimir Putin.
Talks to end the conflict are "getting much closer than people realize," Trump said ahead of the summit. "We're going to be going to Nato, and we're going to be talking about it...I think we're going to get it ended."
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.7% and the Nasdaq Composite up 1.1%.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 2.5%, despite data showing Japanese household spending fell by less than expected in May.
According to the Statistics Bureau of Japan, average monthly household spending fell 0.4% year-on-year in real terms to JPY320,345, or around USD1,975.52. That was a smaller decline than the 2.5% fall expected by economists and an improvement from the 0.5% drop recorded in April. Average monthly household income rose 0.7% in real terms, slowing from 2.3% growth in April.
In China, the Shanghai Composite was down 1.2%, while the Hang Seng index in Hong Kong fell 0.5%. The S&P/ASX 200 in Sydney closed down 0.4%.
Gold was quoted at USD4,118.10 an ounce early Tuesday, lower than USD4,148.94 on Monday.
Brent oil was quoted at USD72.64 a barrel early Tuesday, higher than USD72.13 late Monday.
In Tuesday's corporate calendar, Shell issues a trading statement, while Victrex reports third-quarter results.
In the economic calendar on Tuesday, Canada releases trade balance figures and the Ivey PMI.
Elsewhere, France publishes trade balance and foreign exchange reserves data, while Germany reports industrial production.
In the UK, alongside the Halifax house price index, the Bank of England publishes its financial stability report, while Monetary Policy Committee member Catherine Mann is due to speak.
In the US, trade balance figures, the Redbook index and consumer inflation expectations are scheduled.
By Eva Castanedo, Alliance News senior economics reporter
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