28th Oct 2025 06:57
(Alliance News) - Stocks in London are set to open slightly higher on Tuesday, after a record close on Monday, as HSBC's third quarter profit declined 14%.
IG says futures indicate the FTSE 100 to open up 6.3 points, 0.1%, at 9,660.12 on Tuesday. The index of London large-caps closed up 8.20 points, 0.1%, at 9,653.82. It earlier set a new intra-day high of 9,672.74.
Sterling was at USD1.3357 on Tuesday morning, up from USD1.3331 at the London equities close on Monday. The euro was higher at USD1.1659 from USD1.1639. Against the yen, the dollar was lower at JPY151.97 versus JPY153.04.
Early on Tuesday, HSBC maintained its dividend amid robust interest and fee income growth in the third quarter of 2025.
The Asia-focused, London-based universal bank said pretax profit fell 14% to USD7.30 billion in the third quarter ended September 30, down from USD8.48 billion a year earlier.
Diluted earnings per share declined to USD0.28 from USD0.34 previously.
The bank left its third quarter dividend unchanged at USD0.10 per share, having completed its USD3 billion share buyback programme during the three month period.
Net interest income rose 15% to USD8.78 billion from USD7.64 billion, while net fee income grew 12% to USD3.51 billion from USD3.12 billion.
The US and Japan signed an agreement for "securing" supplies of critical minerals and rare earths, the White House said, as US President Donald Trump visited Tokyo.
The deal comes as the US tries to boost access to critical minerals with China tightening controls on rare earths.
The objective of the deal is "to assist both countries in achieving resilience and security of critical minerals and rare earths supply chains," the statement said.
It said the US and Japan would "jointly identify projects of interest to address gaps in supply chains for critical minerals and rare earths, including derivative products such as permanent magnets, batteries, catalysts, and optical materials."
In further trade news, the US and Mexico have agreed to extend trade talks for several more weeks.
Back in the UK, shop price inflation slowed but fresh food inflation sped up in October, data published by the British Retail Consortium and NielsenIQ showed.
Annual shop price inflation was 1.0% in October, slowed from 1.4% in September and below the three-month average of 1.1%.
Notably, non-food prices fell 0.4% on-year in October, accelerated from a decline of 0.1% in September and in line with the three-month average of a fall of 0.4%.
Food inflation decelerated to 3.7% in October from 4.2% in September, below the three-month average of 4.0%.
Fresh food inflation, however, sped up to 4.3% in October from 4.1% in September, above the three-month average of 4.2%.
The yield on the 10-year US Treasury narrowed to 3.98% on Tuesday from 4.02% on Monday. The yield on the 30-year was at 4.54%, slimmed from 4.59%.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 gained 1.2% and the Nasdaq Composite advanced 1.9%.
In Asia on Tuesday, the Nikkei 225 in Tokyo fell 0.6%, the Shanghai Composite in China lost 0.3%, and the Hang Seng Index in Hong Kong retreated 0.5%. The S&P/ASX 200 in Sydney closed 0.5% lower.
Gold was lower at USD3,945.30 an ounce early on Tuesday from USD3,993.32 late Monday. Brent oil was trading lower at USD64.69 a barrel from USD65.99.
Tuesday's global economic diary sees the start of the two-day Federal Open Market Committee meeting, plus house price data and the Conference Board consumer confidence report in the US.
Tuesday's domestic UK corporate calendar has a trading statement from miner Anglo American and half year results from Airtel Africa.
By Michael Hennessey, Alliance News reporter
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