3rd Jan 2025 06:46
(Alliance News) - London's FTSE 100 is set for a softer start on Friday, returning a fraction of the solid gain it made on the first trading day following the festive period.
IG says futures indicate the FTSE 100 to open 5.3 points lower, 0.1%, at 8,254.79 on Friday. The index of London large-caps closed up 87.07 points, 1.1%, at 8,260.09 on Thursday.
In Asia, financial markets in Tokyo remained closed. In China, the Shanghai Composite sunk 1.6% in late dealings. The Hang Seng Index in Hong Kong was up 0.1%. The S&P/ASX 200 in Sydney rose 0.6%.
In New York on Thursday, the Dow Jones Industrial Average fell 0.4%, the S&P 500 and the Nasdaq Composite lost 0.2%.
China is "determined" to continue opening up its economy to the world in 2025, a top economic planning official said Friday, as Beijing steels itself for potential trade turmoil when US President-elect Donald Trump takes office.
The world's second-largest economy has struggled to revive growth following the Covid-19 pandemic and remains beset by a debt crisis in the crucial housing sector, chronically low consumption and high youth unemployment.
Prospects may darken further after Trump's inauguration on January 20 – the mercurial US leader hiked tariffs on Chinese imports during a wide-ranging trade war in his first term in office, and has promised more of the same.
But on Friday officials from China's top planning body, the National Development & Reform Commission, said that "no matter how the external environment changes, full of uncertainty, China's determination and actions to open up to the outside world will remain unchanged".
The dollar surrendered some ground on Friday morning after surging against the euro and pound on Thursday.
The pound rose to USD1.2401 early Friday, from USD1.2378 at the time of the London equities close on Thursday. The euro climbed to USD1.0274 from USD1.0251. Versus the yen, the dollar was lower at JPY157.25 from JPY157.63.
On Friday, the US ISM manufacturing PMI at 1500 GMT will be the highlight of the global economic calendar.
Figures on Thursday had showed the US labour market remains robust while manufacturing activity, although weak, ticked up from an earlier estimate.
The seasonally adjusted S&P Global US manufacturing purchasing managers' index fell to 49.4 in December, down from 49.7 in November.
But December's reading was better than the preliminary "flash" estimate of 48.3, although it marked the sixth consecutive month of contraction.
Meanwhile, data showed weekly jobless claims, considered a proxy for lay-offs, fell by more than expected, allaying fears of a slowing jobs market.
According to the Department of Labor, in the week ending December 28, the advance figure for seasonally adjusted initial claims was 211,000, a decrease of 9,000 from the previous week's revised level.
The previous week's level was revised up by 1,000 from 219,000 to 220,000. FXStreet consensus was for a slight increase to 222,000 in the most recent week.
The 4-week moving average was 223,250, a decrease of 3,500 from the previous week's revised average. The previous week's average was revised up by 250 from 226,500 to 226,750.
A barrel of Brent faded to USD75.90 early Friday, from USD76.43 late Thursday. Gold traded at USD2,658.13 an ounce, up from USD2,657.49.
By Eric Cunha, Alliance News news editor
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