30th Sep 2025 06:59
(Alliance News) - Stocks in London are set to open slightly lower on Tuesday, ahead of new gross domestic product data for the UK.
IG says futures indicate the FTSE 100 to open down 0.1% at 9,289.74 on Tuesday. The index of London large-caps closed down 0.2% at 9,299.84.
Earlier on Monday, it traded as high as 9,354.61, close to the all-time intra-day record of 9,357.51.
Sterling was at USD1.3438, up slightly from USD1.3432 at the London equities close on Monday. The euro traded at USD1.1734, up from USD1.1731 late Monday. Against the yen, the dollar was lower at JPY148.25 versus JPY148.57.
The yield on the 10-year US Treasury was unchanged from 4.14% on Monday. The yield on the 30-year stayed at 4.71%.
President Donald Trump unveiled a wide-ranging Gaza peace plan and won cautious backing from Israeli Prime Minister Benjamin Netanyahu, who warned he was still ready to "finish the job" against Hamas.
The 20-point plan, which Trump has also circulated to Arab leaders, calls for a ceasefire, release of hostages by Hamas, disarmament of Hamas and gradual Israeli withdrawal from Gaza.
Other key points include deployment of a "temporary international stabilization force" and creation of a transitional authority headed by Trump himself and featuring other foreign leaders.
In a crucial change from Trump's earlier apparent goals, Palestinians will not be forced to leave Gaza. The Palestinian Authority said it welcomed Trump's "sincere and determined efforts."
Meanwhile, several European countries and eight Arab or Muslim-majority nations indicated their support.
In tariff news, the White House said a slate of global tariffs on lumber imports will go into effect October 14.
This includes a 10% tariff on softwood lumber and a 25% tariff on upholstered furniture, which will increase to 30% on January 1. Meanwhile, a 25% tariff on kitchen cabinets and vanities will rise to 50% on January 1.
"The United Kingdom, the European Union, and Japan will enjoy more favorable treatment that reflects the terms of their trade deals," a proclamation said.
Pharmaceuticals imported from the EU into the US will be exempt from the new US tariffs of 100%, set to start on Wednesday, US government sources told dpa.
The White House remains committed to the agreed tariff cap of 15% on EU imports a senior government official confirmed to dpa.
In UK economic data, shop price inflation accelerated in September, driven by non-food prices, data published by NielsenIQ and the British Retail Consortium showed.
Annual shop price inflation rose to 1.4% in September from 0.9% in August, beating the 3-month average of 1.0%. Non-food inflation prices fell by 0.1% on-year in September, however this compared to a fall of 0.8% in August, edging above the 3-month average of a 0.6% contraction.
Food inflation meanwhile was unchanged at 4.2% on-year, above the 3-month average of 4.1%. Fresh food inflation was unchanged at 4.1% on-year in September, higher than the 3-month average of 3.8%.
Wall Street ended higher on Monday, with the Dow Jones Industrial Average up 0.2%, the S&P 500 0.3% higher and the Nasdaq Composite gained 0.5%.
The threat of a US government shutdown on Wednesday remains.
Swissquote analyst Ipek Ozkardeskaya said: "A shutdown by tomorrow is a real possibility, though it wouldn't be the first nor the last time the US government closes on funding issues. A short shutdown wouldn't have a major impact on US growth expectations or risk appetite."
A shutdown could delay the release of US economic data by government agencies, which could muddy the outlook for the Federal Reserve.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.1%. In China, the Shanghai Composite was 0.5% higher, while the Hang Seng index in Hong Kong climbed 0.2%. The S&P/ASX 200 in Sydney was 0.2% lower.
Gold was higher at USD3,867.10 an ounce early on Tuesday from USD3,828.66 late Monday. Brent oil was trading lower at USD66.74 a barrel from USD67.81.
"Crude oil failed to benefit from the softer US dollar or heightened geopolitical tensions in Ukraine," Ozkardeskaya said.
"Reports yesterday that OPEC could announce another supply increase in November weighed on sentiment and sent US crude back below USD65 per barrel. Consequently, the latest bullish attempt has fizzled, leaving WTI stuck in the USD82–85 range and awaiting a meaningful breakout."
Tuesday's global economic calendar has UK GDP figures, inflation prints in Germany, France and Italy plus the Chicago PMI and house price data in the US.
Tuesday's UK corporate calendar sees full-year results from merchant bank Close Brothers, half-year results from retailer Card Factory and Irn-Bru owner AG Barr.
By Michael Hennessey, Alliance News reporter
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