2nd Apr 2025 06:46
(Alliance News) - Stocks in London are set to open lower on Wednesday, as investors wait for US President Donald Trump to shed some light on looming retaliatory tariffs.
ActivTrades analyst Anderson Alves commented: "Expectations now lean toward a more nuanced approach to US tariffs than the previously floated blanket levy. Indeed, recent reports indicate that US President Donald Trump is considering a tiered system with different tariff rates by country, which market participants interpret as less disruptive than a uniform 20% rate.
"Additionally, there are reports that the US is preparing a new tariff option for President Trump described as 'an across-the-board tariff on a subset of nations' that likely would not be as high as the earlier 20% universal tariff option."
IG says futures indicate the FTSE 100 to open 23.4 points lower, 0.3%, at 8,611.40 on Wednesday. The index of London large-caps closed up 51.99 points, 0.6%, 8,634.80 at on Tuesday.
Against the dollar, the pound fell slightly to USD1.2915 early Wednesday from USD1.2920 at the time of the London equities close on Tuesday, The euro declined to USD1.0790 from USD1.0826. Against the yen, the dollar bought JPY149.88, rising from JPY149.33.
Trump kept the world's leading economies on edge Tuesday as he made final preparations for a "liberation day" announcement of sweeping new tariffs that could trigger a global trade war.
Trump has promised to be "very kind" when he unveils the so-called reciprocal tariffs on Wednesday, but uncertainty reigned over which countries would be targeted and by how much.
His plan has prompted vows of retaliation from major economies including the EU on Canada and fears that it could unleash a recession at home and abroad.
The White House said Trump, who will announce the tariffs in the Rose Garden at 2000 GMT on Wednesday, had "made a decision" but was still putting the finishing touches on the measures.
In New York on Wednesday, the Dow Jones Industrial Average ended slightly lower. The
S&P 500 added 0.4%, while the Nasdaq Composite rose 0.9% to snap a four-day losing streak.
In Tokyo late Wednesday, the Nikkei 225 was up 0.4%. Sydney's S&P/ASX 200 added 0.1%. In China, the Shanghai Composite was up 0.1% in afternoon trade, but the Hang Seng Index was down 0.1%.
A barrel of Brent fell to USD74.37 early Wednesday from USD74.74 late Tuesday. Gold faded to USD3,115.61 an ounce from USD3,126.52.
Wednesday's economic calendar has the latest ADP US jobs report at 1315 BST, before Friday's nonfarm payroll data.
Wednesday's local corporate calendar has a trading statement from electricity generator SSE.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.