21st Oct 2025 06:52
(Alliance News) - Stocks in London are set to open higher on Tuesday, following gains in the US and Asia, ahead of the latest UK public sector borrowing figures.
IG says futures indicate the FTSE 100 to open up 25.2 points higher, 0.3% at 9,428.77 on Tuesday. The index of London-listed large-caps closed at 9,403.57 on Monday.
Sterling was quoted at USD1.3385 early Tuesday, lower than USD1.3424 at the London equities close on Monday. The euro traded at USD1.1632 early Tuesday, lower than USD1.1662 late Monday. Against the yen, the dollar was quoted at JPY151.36, higher versus JP150.52.
Global markets started the week on an upbeat note, after US President Donald Trump said he expects to reach a trade deal with China later this month.
The US leader, who had previously accused Beijing of "extraordinarily aggressive" behaviour, softened his tone on Monday and expressed optimism ahead of his meeting with Chinese President Xi Jinping at the upcoming APEC summit in South Korea.
"I want to be good to China. I love my relationship with President Xi. We have a great relationship," Trump said, adding he was focused on securing a "fair" agreement between the two superpowers.
Meanwhile, the US and Australia signed a deal aimed at boosting supplies of rare earths and critical minerals, in a move to counter China's dominance in the market.
Australian Prime Minister Anthony Albanese said the agreement would back a pipeline of USD8.5 billion in "ready-to-go" projects to expand mining and processing capacity, including USD1 billion in joint investments over the next six months.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.1%, the S&P 500 up 1.1% and the Nasdaq Composite up 1.4%
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.7%. In China, the Shanghai Composite was up 1.2%, while the Hang Seng index in Hong Kong was up 1.5%. The S&P/ASX 200 in Sydney closed up 0.7%.
Japanese stocks surged after parliament appointed conservative China critic Sanae Takaichi as the country's first female prime minister. Her new ruling coalition is expected to discuss higher defence spending, potential tax cuts, and a push to restart Japan's suspended nuclear power plants.
Elsewhere, developments in the war in Ukraine will also be in focus after Trump said he does not believe Kyiv will win against Russia, though he did not rule it out entirely.
"They could still win. I don't think they will, but they could still win," he said, adding that both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin "truly hate each other."
Trump and Putin agreed last week to meet again in Budapest, a choice of venue that has irritated Kyiv and several European capitals due to Prime Minister Viktor Orban's long-standing ties with Russia and his reputation as a frequent EU antagonist.
Gold was quoted at USD4,334.40 an ounce early Tuesday, lower than USD4,345.43 on Monday.
Brent oil was trading at USD60.96 a barrel early Monday, higher than USD60.69 late Monday.
In Tuesday's corporate calendar, Bluefield Solar Income Fund releases full-year results, while Bunzl, Segro and XP Power issue trading statements.
In the economic calendar, UK public sector net borrowing figures are due at 0700 BST.
By Eva Castanedo, Alliance News reporter
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