18th Nov 2025 06:48
(Alliance News) - London's FTSE 100 is to open sharply lower on Tuesday, after shares in New York closed in the red with tech worries still in the "spotlight", while equities in Asia suffered an even larger plunge.
IG says futures indicate the FTSE 100 to open down 117.2 points, 1.2%, at 9,558.23 on Tuesday. The index of London large-caps closed down 22.94 points, 0.2% at 9,675.43 on Monday.
In New York on Monday, the Dow Jones Industrial Average shed 1.2%, the S&P 500 gave back 0.9% and the Nasdaq Composite declined 0.8%.
Pepperstone analyst Michael Brown commented: "Stocks wobbled again yesterday, with the AI trade still in the spotlight ahead of Nvidia earnings tomorrow."
In Tokyo, the Nikkei 225 slumped 3.0%. In China, the Shanghai Composite was down 0.9% in late trade, while the Hang Seng Index in Hong Kong was 1.9% lower. Sydney's S&P/ASX 200 slumped 1.9%.
SPI Asset Management analyst Stephen Innes commented: "Asia stepped into Tuesday's session and immediately found itself trading in the shadow of Tokyo's sudden altitude loss. Japan's market didn't wobble - it opened a trapdoor. The Nikkei fell through it, spilling over 3% and leaving a scar across regional risk sentiment that every trader in Hong Kong, Singapore, and Sydney could feel vibrating through their screens. The move wasn't about one sector (although tech is always involved these days) or one catalyst; it was the kind of macro air pocket you only get when too many fault lines shift at the same time."
The pound faded slightly to USD1.3162 early Tuesday, from USD1.3169 at the time of the London equities close on Monday. The euro was largely flat at USD1.1599 against USD1.1598. Against the yen, the dollar slipped to JPY154.91 from JPY155.12.
The yield on the 10-year US Treasury narrowed to 4.10% from 4.13% at the time of the London equities close on Monday. The 30-year yield eased to 4.72% from 4.73%.
Innes added: "Nvidia earnings tomorrow became the central gravitational force shaping risk appetite everywhere from Seoul to Taipei. Chips are the engine of the AI super-cycle, and the slightest hint that the engine might sputter is enough to knock the air out of Asia's broader equity complex. That's before even getting to the shutdown-delayed US macro data that will finally drop this week—most notably Thursday's nonfarm payrolls, the single print that could either revive or fully extinguish December rate-cut hopes.
"And that's the heart of the problem: Asia is trading blind into a US data deluge. With no fresh signals for days, November's volatility regime has picked up speed. December cut odds have slipped from 60% to roughly 40%, and the market is treating every dip in US yields with suspicion rather than conviction."
In addition, investors also have China-Japan tensions to be mindful of.
Japan has warned its citizens in China to be careful of their surroundings and to avoid big crowds amid a diplomatic row over Prime Minister Sanae Takaichi's comments on Taiwan.
The escalating spat has already seen Beijing advise Chinese citizens to avoid travelling to Japan and hit Tokyo stocks.
"Pay attention to your surroundings and avoid as much as possible squares where large crowds gather or places that are likely to be identified as being used by many Japanese people," the Japanese embassy in China said in a statement on its website dated Monday.
Minoru Kihara, Japan's top government spokesman, said Tuesday that such advice was issued "based on a comprehensive assessment of the political situation, including the security situation in the relevant country or region, as well as the social conditions."
A barrel of Brent fell to USD63.59 early Tuesday, from USD64.46 late Monday afternoon. Gold fell to USD4,010.74 an ounce from USD4,071.30.
Tuesday's UK corporate calendar has full-year results from tobacco company Imperial Brands and supplier of specialised technical products and services Diploma.
By Eric Cunha, Alliance News news editor
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