16th Oct 2025 06:59
(Alliance News) - Stocks in London are set to open lower on Thursday, with a US-China tit-for-tat weighing on sentiment, ahead of a UK gross domestic product reading for August.
IG says futures indicate the FTSE 100 to open 22.8 points lower, 0.2%, at 9,401.95 on Thursday. The index of London large-caps closed down 28.02 points, 0.3%, at 9,424.75 on Wednesday.
Sterling advanced to USD1.3418 on Thursday morning in London, from USD1.3395 at the time of the London equities close on Wednesday. The euro rose to USD1.1658 from USD1.1635, while against the yen, the buck fell to JPY151.11 from JPY151.20.
According to consensus cited by FXStreet, the UK economy is expected to have risen 0.1% on-month in August. It had tread water in July.
The yield on the 10-year US Treasury widened to 4.03% on Thursday from 4.02% at the time of the London equities close on Wednesday. The 30-year yield stretched to 4.62% from 4.61%.
In New York on Wednesday, the Dow Jones Industrial Average closed marginally lower, the S&P 500 added 0.4% and the Nasdaq Composite climbed 0.7%.
In China, the Shanghai Composite was down 0.2%, while the Hang Seng Index in Hong Kong was 0.7% lower. Tokyo's Nikkei 225 was up 1.2%, while Sydney's S&P/ASX 200 was 0.9% higher.
US Treasury Secretary Scott Bessent slammed Beijing's rare earth export curbs Wednesday as "China versus the world," vowing that Washington and its allies would "neither be commanded nor controlled."
"This should be a clear sign to our allies that we must work together, and work together we will," Bessent told reporters at a press conference. "We are not going to let a group of bureaucrats in Beijing try to manage the global supply chains."
His comments came as global economic leaders gather in Washington this week for the International Monetary Fund and World Bank's fall meetings.
"We should work together to de-risk and diversify our supply chains away from China as quickly as possible," Bessent urged.
A trade war between Washington and Beijing has reignited in US President Donald Trump's second term, with tit-for-tat duties reaching triple-digit levels at one point, snarling supply chains.
Both sides have de-escalated tariff levels but their truce remains shaky and is set to expire in early November.
With the latest controls surrounding rare earths, Trump has threatened an additional 100% tariff on goods from China starting November 1.
Trump on Wednesday added to a sense of unease when he told reporters the countries were involved in a trade war.
"Well, you're in one now," he replied to a reporter who questioned whether they were on course for a sustained trade war if he did not reach an agreement with Chinese counterpart Xi Jinping.
An ounce of gold rose to 4,209.81 an ounce early Thursday, from USD4,199.71 late Wednesday afternoon in London. Brent rose to USD62.29 a barrel from USD62.20.
Thursday's global economic diary has the UK GDP and trade data and the Philadelphia Fed manufacturing index in the US.
Thursday's UK corporate calendar has a trading statement from speciality chemicals manufacturer Croda, half-year results from Premier Inn owner Whitbread, and a third quarter trading update from building materials company Travis Perkins.
By Eric Cunha, Alliance News news editor
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