31st Dec 2024 06:51
(Alliance News) - Stocks in London are set to open lower on Tuesday, ending a somewhat tepid year in an underwhelming fashion.
IG says futures indicate the FTSE 100 to open 21.0 points lower, 0.6%, at 8,100.01 on Tuesday. The index of London large-caps ended down 28.77 points, 0.4%, at 8,121.01 on Monday.
London's flagship index is up 5.0% heading into the final day of 2024, falling short of loftier gains seen in US stocks this year, and the DAX 40 index in mainland Europe. Frankfurt's blue-chip benchmark rose 19% in 2024. Markets in Frankfurt are closed on Tuesday. They are also closed in Tokyo.
The CAC 40 in Paris is down 3.0% so far in 2024, and is called to open 0.1% lower on Tuesday.
In New York on Monday, the Dow Jones Industrial Average lost 1.0%, the S&P 500 shed 1.1% and the Nasdaq Composite gave back 1.2%.
Year-to-date, the Dow is up 13%, the S&P up 24% and the Nasdaq is up 30%.
Early in London on Tuesday, the pound was higher at USD1.2547, from USD1.2517 at the time of the local equities close on Monday. The euro was up at USD1.0402 against USD1.0384. Versus the yen, the dollar was down at JPY156.21 from JPY157.19.
A barrel of Brent rose to USD74.62 each early Tuesday, rising from USD73.93 at the time of the London equities close on Monday. Gold rose to USD2,607.93 an ounce from USD2,597.04.
China's manufacturing activity expanded in December for the third month in a row, official data showed Tuesday, as leaders fight to reverse a slowdown in the world's number two economy.
The country has struggled to climb out of a slump fuelled by a property market crisis, weak consumption and soaring government debt.
China's purchasing managers' index – a key measure of industrial output – was 50.1 in December, marking a third consecutive month of expansion, according to the National Bureau of Statistics.
Tuesday's figure was lower than Bloomberg analysts' prediction of 50.2, but still above 50, which indicates an expansion in manufacturing activity.
A reading below that shows a contraction.
The key indicator slid for six months in the middle of the year before returning to expansion territory in October.
Beijing has unveiled a string of aggressive measures in recent months aimed at bolstering growth, including cutting interest rates, cancelling restrictions on homebuying and easing the debt burden on local governments.
President Xi Jinping said China must put "more proactive" macroeconomic policies in place next year, state media reported, as he addressed a top political body on New Year's Eve.
"We must... further comprehensively deepen reform, expand high-level opening up, better coordinate development and security, (and) implement more proactive and effective macroeconomic policies," state broadcaster CCTV quoted Xi as telling the National Committee of the Chinese People's Political Consultative Conference at a New Year's tea party.
The Shanghai Composite traded 1.4% lower in late dealings on Tuesday. It is up 13% for the year. The Hang Seng in Hong Kong ended 0.1% higher in an abbreviated trading session, adding 18% for the year as a whole.
In Sydney, the S&P/ASX 200 fell 0.9% on Tuesday but registered a 7.5% advance in 2024.
By Eric Cunha, Alliance News news editor
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