16th Sep 2025 06:15
(Alliance News) - Stocks in London are set to open a touch higher on Tuesday, ahead of UK unemployment data and before the Federal Reserve meeting begins.
The UK jobless data is released at 0700 BST, before eurozone industrial production data at 1000 and US retail sales at 1330.
"On this side of the pond, though, focus will fall firstly on this morning's UK employment report, set to show unemployment having held steady at 4.7% in the three months to July," Pepperstone analyst Michael Brown commented.
IG says futures indicate the FTSE 100 to open 5.4 points higher, 0.1% at 9,282.43 on Tuesday. The index of London large-caps closed down 6.26 points, 0.1% at 9,277.03 on Monday.
The pound rose to USD1.3615 early on Tuesday, the eve of the next Fed decision, from USD1.3597 on Monday. The euro advanced to USD1.1775 from USD1.1765, while against the yen, the buck fell to JPY147.03 from JPY147.34.
"The dollar is pressed up against the cliff, staring into the void, but gravity hasn't yet taken charge. Yields at the short end have collapsed since August, payroll revisions wiped almost a million jobs off the books, and inflation prints have softened just enough to hand Powell cover for easing. On paper, the greenback should already have slipped into the ravine. Instead, it clings stubbornly to the ledge, balanced on cracked rock, refusing to fall," SPI Asset Management analyst Stephen Innes commented.
"Markets are hesitant to give it the final shove. Just 26 bps are priced for this week's FOMC, and 70 bps by December. Without a surprise 50 bp cut or Powell opening the door to bigger moves if the labour market buckles further, there's no trigger for a deeper drop."
In Tokyo, the Nikkei 225 rose 0.5%. Financial markets had been closed in Tokyo at the start of the week. In China, the Shanghai Composite was down 0.1%, while the Hang Seng Index was up 0.1%. In Sydney, the S&P/ASX 200 was up 0.3%.
In New York at the start of the week, the Dow Jones Industrial Average rose 0.1%, the S&P 500 added 0.5% and the Nasdaq Composite rose 0.9%.
SPI's Innes commented: "The US–China trade talks offered a spark of optimism Monday, with Trump promising a Friday call with Xi and a framework deal on TikTok ownership giving Washington the optics of control. Yet the subtext is unmistakable—AI and chips are the crown jewels here, and Beijing's fresh antitrust probe into Nvidia was no coincidence. Both capitals are haggling not over tariffs but over who holds the keys to the next high-tech revolution."
Nvidia said it follows all laws after a Chinese investigation found it had breached antitrust rules, the latest development in a fierce tech battle between Beijing and Washington.
"We comply with the law in all respects," a spokesperson for the Santa Clara, California-based chipmaker said in a written statement to AFP.
"We will continue to cooperate with all relevant government agencies as they evaluate the impact of export controls on competition in the commercial markets," the statement added.
A barrel of Brent rose to USD67.55 on Tuesday morning, from USD67.37 at the time of the London equities close on Monday. Gold traded at USD3,684.22 an ounce, up from USD3,668.27.
On Tuesday's economic calendar, highlights include UK unemployment, and US retail sales and industrial production.
On Tuesday's UK corporate calendar, construction firm MJ Gleeson reports annual results and staffing company SThree releases a trading statement.
By Eric Cunha, Alliance News news editor
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