4th Nov 2025 06:54
(Alliance News) - Stocks in London are set to open lower on Tuesday, ahead of third quarter results from BP as earnings season continues to unfold.
IG says futures indicate the FTSE 100 to open down 30.9 points, 0.3%, at 9,670.47 on Tuesday. The index of London large-caps closed down 15.88 points, 0.2%, at 9,701.37 on Monday.
Sterling was at USD1.3126 on Tuesday morning, down from USD1.3146 at the London equities close on Monday. The euro was lower at USD1.1525 from USD1.1531. Against the yen, the dollar was lower at JPY153.55 versus JPY154.14.
A key US central bank official warned that inflation would likely remain elevated in the coming year as tariffs bite, while vowing to fulfil her duties even as President Donald Trump seeks her removal.
"My outreach to business leaders suggests that the pass-through of tariffs to consumer prices is not yet complete," Federal Reserve Governor Lisa Cook said at the Brookings Institution think tank in Washington.
She noted that many companies have adopted a strategy of running down inventories at lower prices before raising consumer costs, while others are waiting for tariff uncertainty to dissipate before hiking prices.
"As such, I expect inflation to remain elevated for the next year," Cook added. But she vowed to "be prepared to act forcefully" if tariff effects appear to be larger or more persistent than expected.
Meanwhile, overnight the Reserve Bank of Australia left the cash rate unchanged at 3.6%, as widely expected.
It noted that "inflation has picked up" driven partly by temporary factors, with forecasts showing underlying inflation rising above 3% in the coming quarters before settling at 2.6% in 2027.
Back in the UK, Keir Starmer told Labour members of parliament that Chancellor Rachel Reeves will make "tough but fair" decisions at the upcoming UK government budget, amid mounting speculation of a potential hike to income tax.
The prime minister warned "hard and serious" choices were needed to fix the UK's financial woes as he sought to roll the pitch for a difficult autumn statement on November 26.
The yield on the 10-year US Treasury slimmed slightly to 4.09% on Tuesday morning from 4.12% on Monday. The yield on the 30-year narrowed to 4.67% from 4.70%.
In the US on Monday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.5%, while the S&P 500 gained 0.2% and the Nasdaq Composite advanced 0.5%.
In Asia on Tuesday, the Nikkei 225 in Tokyo was down 1.5%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng Index in Hong Kong was 0.6% lower. The S&P/ASX 200 in Sydney was 0.9% lower.
Gold was lower at USD3,977.70 an ounce early on Tuesday from USD3,997.03 late Monday. Brent oil was trading lower at USD64.60 a barrel from USD65.08.
Tuesday's global economic calendar has unemployment figures in Spain.
Tuesday's UK corporate calendar has full-year results from Primark owner Associated British Foods and a third quarter trading statement from oil major BP.
By Michael Hennessey, Alliance News reporter
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