11th Nov 2025 06:53
(Alliance News) - Stocks in London are set to open higher on Tuesday, as investors await the latest UK unemployment figures, buoyed by optimism after the US Senate voted for a funding bill that could end the government shutdown.
IG says futures indicate the FTSE 100 to open 59.4 points higher, or 0.6% at 9,847.05 on Tuesday. The index of London large-caps closed up 1.1% at 9,787.15 on Monday.
The longest-ever US government shutdown appeared to edge toward a resolution on Monday after several Democratic senators broke ranks to join Republicans in passing a compromise funding measure.
The Senate approved the deal in a 60-40 vote, sending it to the House of Representatives, which could vote on the measure as early as Wednesday before sending it to President Donald Trump’s desk.
If the shutdown is formally lifted, markets are bracing for a flood of delayed US economic data.
“Investors will finally receive a flood of economic data that will help them gauge the health of the US economy, assess the jobs market and see whether inflation is picking up momentum - all of which will help them readjust bets ahead of the Fed’s December meeting,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
Sterling was quoted at USD1.3169 early Tuesday, marginally higher than USD1.3160 at the London equities close on Monday.
The euro traded at USD1.1568 early Tuesday, little changed from USD1.1554 late Monday. Against the yen, the dollar strengthened to JPY154.19 from JPY153.97.
In Europe, attention also turned to Brussels, where the European Commission on Monday sought to defuse mounting parliamentary opposition to its long-term budget proposal by offering limited revisions, including additional funds for farmers.
European Commission President Ursula von der Leyen described talks with European Parliament President Roberta Metsola and Danish Prime Minister Mette Frederiksen, representing the European Council, as "constructive," noting that there was now a “solid understanding of the proposals and a clear path forward."
The commission’s nearly EUR2 trillion budget for 2028 to 2034 has met strong resistance from lawmakers, particularly over plans to consolidate regional and agricultural funding into a single envelope administered by national governments. The proposal has angered local leaders and farming unions, who fear reduced oversight and funding volatility.
Back in the UK, annual retail sales growth slowed in October as shoppers held off major spending ahead of the government’s Budget and the Black Friday sales period.
Data from the British Retail Consortium and KPMG showed annual total retail sales growth eased to 1.6% in October from 2.3% in September, though still above the 0.6% pace seen a year earlier.
Food sales growth decelerated to 3.5% in October from 4.3% in September, while non-food categories saw weaker demand as consumer confidence remained fragile.
Helen Dickinson, chief executive of the BRC, said: "October was a subdued month, with the weakest growth since May. "Retailers are counting on Black Friday to deliver a vital boost, but looming Budget decisions risk undermining fragile consumer confidence. With demand weak and business rates unresolved, retailers face hard choices on investment and recruitment.
She added: "A business rates surtax on retail would put major stores and thousands of jobs at risk. The chancellor should use the Budget to remove this threat and help curb inflation for businesses and families."
The Budget, due on November 26, is already generating debate after Chancellor Rachel Reeves suggested Labour may abandon its election pledge not to raise income tax. Reeves said keeping that promise could only be achieved through "deep cuts" to public investment, warning that such austerity would risk "derailing hopes of future economic growth."
In New York on Monday, Wall Street ended sharply higher, lifted by optimism over the shutdown breakthrough.
The Dow Jones Industrial Average rose 0.8%, the S&P 500 gained 1.5%, and the Nasdaq Composite surged 2.3%.
However, sentiment in Asia turned more cautious on Tuesday. The Nikkei 225 in Tokyo fell 0.2%, the Shanghai Composite in China slipped 0.3%, and the Hang Seng Index in Hong Kong edged down 0.2%. The S&P/ASX 200 in Sydney closed down 0.2%.
In Japan, Sony shares rose 5.3% after the company lifted its full-year outlook and reported strong second-quarter results, driven by robust sales.
The Tokyo-based electronics firm said attributable net income from continuing operations increased 6.7% to JPY311.43 billion, or approximately USD2.02 billion, in the quarter ended September 30, from JPY291.76 billion a year earlier.
Diluted earnings per share rose 7.6% to JPY51.71 from JPY48.04, while sales climbed 4.6% to JPY3.11 trillion from JPY2.97 trillion a year before.
Gold was quoted at USD4,137.00 an ounce early Tuesday, up from USD4,091.42 late Monday. Brent oil traded at USD63.78 a barrel early Tuesday, up slightly from USD63.45 late Monday.
In Tuesday’s corporate calendar, 4imprint Group PLC issues a trading statement, while AB Dynamics PLC and Abingdon Health PLC report full-year results.
DCC PLC and Dialight PLC publish half-year results, and Hilton Food Group PLC, Informa PLC, Luceco PLC, and Vesuvius PLC issue trading statements. Oxford Instruments PLC and Vodafone Group PLC also report half-year results.
In the economic calendar, UK unemployment and average earnings figures are due at 0700 GMT.
By Eva Castanedo, Alliance News reporter
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