17th Dec 2025 06:59
(Alliance News) - Stocks in London are set to open higher on Wednesday, as investors look ahead to UK inflation data.
IG says futures indicate the FTSE 100 to open up 21.4 points, 0.2%, at 9,706.19 on Wednesday. The index of London large-caps closed down 0.7% at 9,684.79 on Tuesday.
UK inflation data due at 0700 GMT will be in focus, with FXStreet consensus forecasting annual CPI at 3.5% and PPI at 0.4%.
Sterling was quoted at USD1.3385 early Wednesday, down from USD1.3429 at the London equities close on Tuesday. The euro traded at USD1.1724 early Wednesday, lower than USD1.1775 late Tuesday, while against the yen, the dollar strengthened to JPY155.32 from JPY154.79.
The White House has suspended the implementation of a technology cooperation agreement with the UK that was signed during US President Donald Trump's state visit in September.
Michael Kratsios, head of the White House Office of Science & Technology Policy, said on X that the UK must make "substantial progress" in trade talks before cooperation can resume.
The deal was intended to deepen collaboration in artificial intelligence, quantum computing and nuclear energy under the US-UK "Economic Prosperity Deal" agreed in May.
Geopolitical attention also turned to Eastern Europe after Ukrainian President Volodymyr Zelensky said proposals being negotiated with US officials for a peace deal with Russia could be finalised within days.
Zelensky said the draft plan discussed during talks in Berlin was "very workable", though he cautioned that unresolved issues remain, particularly concerning Ukrainian territory occupied by Russian forces.
In the US on Tuesday, Wall Street ended mixed. The Dow Jones Industrial Average fell 0.6%, the S&P 500 slipped 0.3%, while the Nasdaq Composite edged up 0.2%.
Linh Tran, market analyst at XS.com, said: "The S&P 500 has retreated after approaching the historical high established in October this year. As the index once again tested this price level, market sentiment turned more cautious, as investors require additional confirmation that earnings growth can be sustained, inflation will not re-accelerate, and the Federal Reserve truly has room to ease policy without reigniting inflationary pressures.
"With these conditions still unclear, profit-taking has begun to emerge, resulting in the current technical pullback."
Trade tensions resurfaced after the US threatened countermeasures against the European Union over efforts to tax American firms.
The US Trade Representative criticised what it described as "discriminatory and harassing" lawsuits, taxes and fines against US companies, warning Washington would respond if such measures continued.
The EU, however, pledged to enforce its tech regulations "without discrimination."
In corporate news, Warner Bros Discovery is planning to reject Paramount Skydance's hostile takeover bid due to concerns about financing and other terms, Bloomberg reported.
After deliberating and reviewing the Paramount bid, the Warner Bros board still views the company's existing agreement with Netflix as offering greater value, certainty and terms than what Paramount has proposed, Bloomberg sources said.
Warner Bros' response to Paramount's tender offer could be filed as early as Wednesday, the report added.
Warner Bros agreed this month to sell its studios, streaming business and HBO to Netflix for USD27.75 a share, or about USD83 billion including debt. While Paramount has offered to buy all of Warner Bros for USD30 a share, or more than USD108 billion, including debt.
Separately, data released on Tuesday by the US Bureau of Labor Statistics showed the unemployment rate climbed to 4.6% in November, above FXStreet-cited expectations of 4.4% and marking the highest level since September 2021.
The jobless rate was up from 4.2% a year earlier, with the number of unemployed Americans rising to 7.8 million from 7.1 million in November 2024.
In Asia on Wednesday, markets were mostly higher. The Nikkei 225 in Tokyo rose 0.3%, the Shanghai Composite gained 1.2%, and the Hang Seng Index in Hong Kong advanced 0.7%. The S&P/ASX 200 in Sydney closed down 0.2%.
Japan's trade balance swung back into surplus in November, provisional data from the Ministry of Finance showed.
The surplus stood at JPY322.23 billion, or around USD2.08 billion, compared with a JPY120.81 billion deficit a year earlier and a JPY231.77 billion deficit in October.
The figure beat the FXStreet consensus forecast of a JPY71.2 billion surplus. Imports rose 1.3% year-on-year, below expectations, while exports climbed 6.1%, exceeding forecasts.
Gold was quoted at USD4,329.10 an ounce early Wednesday, up from USD4,304.60 on Tuesday. Brent oil traded at USD59.74 a barrel early Wednesday, higher than USD59.01 late Tuesday.
In Wednesday's economic calendar, UK consumer price index, producer price index and retail price index data are due at 0700 GMT, alongside Germany's Ifo business climate survey and eurozone consumer price index inflation.
In the economic calendar on Wednesday
By Eva Castanedo, Alliance News reporter
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