25th Nov 2025 06:53
(Alliance News) - Stocks in London are set to open slightly lower on Tuesday, taking little encouragement from a surge in New York amid rising Federal Reserve cut expectations.
IG says futures indicate the FTSE 100 to open down 18.1 points, 0.2%, at 9,516.81 on Tuesday. The index of London large-caps closed down 4.80 points, 0.1%, at 9,534.91 on Monday.
Against the dollar, sterling was unchanged at USD1.3104 on Tuesday morning, where it stood at the time of the London equities close on Monday. The euro faded to USD1.1518 from USD1.1525. Against the yen, the buck slipped to JPY156.74 from JPY156.91.
The yield on the 10-year US Treasury narrowed to 4.04% from 4.05%. The 30-year yield slimmed to 4.68% from 4.69%.
In Tokyo late on Tuesday, the Nikkei 225 was flat. In China, the Shanghai Composite was up 0.9%, the Hang Seng Index was 0.3% higher and the S&P/ASX 200 in Sydney rose 0.1%.
In New York on Monday, the Dow Jones Industrial Average added 0.4%, the S&P 500 jumped 1.6% and the Nasdaq Composite soared 2.7%.
Pepperstone analyst Michael Brown commented: "Sentiment remained solid as the fresh trading week got underway after a surprise Trump-Xi call, and a further dovish repricing of Fed policy expectations.
"It proved a solid day for stocks, with 'green on the screen' across the board, and with benchmarks on Wall St likely helped by a further dovish repricing of Fed policy expectations (USD OIS now discounts an 85% chance of a Dec cut) after Governor [Christopher] Waller suggested his openness to such a move in an interview yesterday. In fact, the rally saw both the S&P and Nasdaq notch their best days since back in May."
A barrel of Brent rose to USD62.96 on Tuesday morning, from USD62.90 late Monday. Gold rose to USD4,143.01 an ounce, from USD4,097.64.
On Tuesday's economic calendar is German gross domestic product data at 0700 GMT, before a US producer price index reading at 1330 GMT.
On Tuesday's UK corporate calendar, contract caterer Compass and budget carrier easyJet release annual results.
Focus on Wednesday turns to the UK government's budget. Chancellor Rachel Reeves has urged Labour MPs to back her forthcoming budget, as the final day before the major financial statement dawns.
She is due to deliver her second budget in the House of Commons on Wednesday, in which she is widely expected to pull the lever on tax hikes in order to fill a black hole in the public finances.
Reeves called for unity within the Labour Party as she spoke to restive backbenchers on Monday night, urging them to support her efforts to steer the national economy.
By Eric Cunha, Alliance News news editor
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