17th Feb 2025 06:57
(Alliance News) - London's FTSE 100 is called to open marginally higher on Monday, with the start of the week expected to be quiet amid a US holiday, while tariff threats and developments in Ukraine remain in focus.
IG says futures indicate the FTSE 100 to open 5.3 points higher, 0.1% at 8.737.76 on Monday. The index of London large-caps closed down 32.26 points, 0.4% at 8,732.46 on Friday.
Bannockburn Global Forex analyst Marc Chandler commented: "The lack of visibility given what still seems to be an unpredictable US administration means that short-term market participants do not have much conviction. The bilateral talks between the US and Russia over Ukraine is a bit like the Suez Crisis (1956) where US interests diverged starkly from the UK and France. Now may be the most strained relationship between the US and Europe since then."
UK Prime Minister Keir Starmer said Sunday he was ready to send troops to Ukraine if it was needed to ensure the security of Britain and Europe.
The UK was playing a leading role in supporting Kyiv in the war against Russia which "also means being ready and willing to contribute to security guarantees to Ukraine by putting our own troops on the ground if necessary," Starmer wrote in the Daily Telegraph.
"I do not say that lightly," Starmer added, saying he felt "very deeply the responsibility that comes with potentially putting British servicemen and women in harm's way.
"But any role in helping to guarantee Ukraine's security is helping to guarantee the security of our continent, and the security of this country."
Starmer confirmed he would join a top-level meeting to be held in Paris on Monday to address growing concerns over US efforts to end the war in Ukraine.
A barrel of Brent oil rose to USD74.90 early Monday from USD74.75 at the time of the London equities close on Friday. Gold was quoted at USD2,893.81 an ounce, flat from USD2,893.73.
Against the dollar, the pound faded to USD1.2593 on Monday, from USD1.2612 at the time of the London equities close on Friday. The euro slipped to USD1.0491 from USD1.0505. Against the yen, the dollar faded to JPY151.73 from JPY152.06.
"The Japanese yen has strengthened for the third consecutive session, supported by a retreat in the US dollar and stronger-than-expected GDP growth in Japan. The country's GDP expanded at an annualized rate of 2.8% in Q4 2024, marking the third straight quarter of growth," DHF Capital analyst Bas Kooijman commented.
"The BoJ raised rates to 0.5% in January, the highest in 17 years, and indicated the potential for further hikes. This has increased the yen's attractiveness, as higher interest rates could lead to capital inflows. Whilst market participants had expected a slowdown in private consumption, the slight increase of 0.1% exhibits ongoing economic strength. The yen is likely to continue benefiting from the BoJ's tightening cycle."
In Tokyo, the Nikkei 225 was flat in late dealings. In China, the Shanghai Composite was up 0.1%. The Hang Seng Index in Hong Kong was also 0.1% higher. In Sydney, the S&P/ASX 200 fell 0.2%.
Chinese President Xi Jinping held a meeting Monday with top private business leaders, including Alibaba Group co-founder Jack Ma, state media footage showed.
Since coming to power more than a decade ago, Xi has consistently sought to bolster the role of state enterprises in the world's second-largest economy and warned against the "disorderly" expansion of the private sector.
But reports last week said he was preparing to meet leading business luminaries, as he battles a slowing economy beset by a real-estate crisis, persistently low consumption and high youth unemployment.
In Monday's UK corporate calendar, MONY Group releases full-year results.
Markets in the US will be closed for Washington's Birthday.
By Eric Cunha, Alliance News news editor
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