25th Jun 2025 06:47
(Alliance News) - London's FTSE 100 is called to open ever-so-slightly higher on Wednesday, with eyes remaining on events in the Middle East, and focus also on Federal Reserve Chair Jerome Powell's testimony before the Senate.
IG says futures indicate the FTSE 100 to open 6.1 points higher, 0.1%, at 8,765.09 on Wednesday. The index of London large-caps closed up just 0.95 points, at 8,758.99 on Tuesday.
In Tokyo on Wednesday, the Nikkei 225 was up 0.3%, while in Sydney, the S&P/ASX 200 added 0.1%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng Index in Hong Kong traded 0.8% higher.
In New York on Tuesday, the Dow Jones Industrial Average closed up 1.2%, the S&P 500 added 1.1% and the Nasdaq Composite jumped 1.4%.
"Gains were broad-based, led by Technology, Financials, and Communication Services, while the Energy sector lagged amid continued weakness in crude prices. Oil extended its decline following the ceasefire news and Trump's remark that China may resume oil imports from Iran, while also expressing hope that Beijing would increase purchases of US crude," ActivTrades analyst Anderson Alves commented.
"Looking ahead, market participants will focus on Federal Reserve Chair Jerome Powell's testimony before the Senate later today for further signals on the monetary policy outlook. They will also closely monitor Middle East developments for any signs of renewed geopolitical volatility."
Iran said on Tuesday that it was ready to return to negotiations with the US, as a fragile ceasefire in its war with Israel took hold after 12 days of strikes that pummelled the Islamic republic's nuclear facilities.
After Iran retaliated with a missile attack Monday night targeting a US base in Qatar, President Donald Trump called for de-escalation, announcing the contours of a truce deal hours later.
A barrel of Brent rose slightly to USD68.13 on Wednesday, from USD68.08 at the time of the London equities close on Tuesday. Oil prices had tumbled on Tuesday. Gold rose to USDD3,331.81 an ounce from USD3,314.07.
US Federal Reserve Chair Jerome Powell told lawmakers Tuesday that the central bank can afford to wait for the impact of tariffs before deciding on further interest rate cuts – despite President Donald Trump's calls to slash levels.
The Fed has a duty to prevent a one-time spike in prices from becoming an "ongoing inflation problem," Powell said before the House Committee on Financial Services.
"For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," he added.
Powell testifies to the Senate later.
The yield on the 10-year US Treasury eased to 4.29% on Wednesday from 4.30% at the time of the London equities close on Tuesday. The 30-year yield narrowed to 4.83% from 4.85%.
Sterling was unmoved at USD1.3621, the euro edged down to USD1.1616 from USD1.1621, while against the yen, the dollar bought JPY145.05, up from JPY144.84.
The governor of the Bank of England has said the unpredictability of world events including tariffs and conflict in the Middle East makes it hard to determine the outlook for the UK economy.
Andrew Bailey said he viewed domestic issues as more important than global ones when it comes to setting interest rates.
Speaking to MPs on the Lords Economic Affairs Committee, he said: "Focusing on the tariff issue… it is very unpredictable where this is all going to end up.
"We are coming towards the end of the 90-day period that President Trump set out for reaching agreements. We've had one agreement so far which is with the UK – it obviously isn't implemented yet – and that is it at the moment.
"So quite where this is going to go, we don't know at this stage."
Wednesday's local corporate calendar has full-year results from Babcock International.
By Eric Cunha, Alliance News news editor
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