30th Jul 2025 06:53
(Alliance News) - London's FTSE 100 is called to open higher on Wednesday, ahead of another barrage of corporate earnings, before focus turns to events stateside.
The economic calendar has US gross domestic product data, as well as a Federal Reserve decision.
A decision from the US central bank comes at 1900 BST on Wednesday, and a press conference with Chair Jerome Powell follows shortly after.
According to the CME FedWatch Tool, it is near-certain that the Fed maintains rates at the 4.25%-4.50% range this week. The Fed held in each of the first four meetings this year. Its last cut was in December, a 25 basis points trim to the federal funds rate range.
IG says futures indicate the FTSE 100 to open 7.8 points higher at 9,144.12 on Wednesday. The index of London large-caps closed up 54.88 points, 0.6%, at 9,136.32 on Tuesday.
"Wall Street's walking into a three-day meat grinder—GDP, the Fed, payrolls, and four of the world's most systemically important stocks all crowding into the same narrow macro window. Toss in the August 1 tariff trigger and you've got enough tinder to blow the lid off this low-vol regime. No more coasting. This is where the market either earns its multiple or cracks it wide open," SPI Asset Management analyst Stephen Innes commented.
The US and China have failed to reach an agreement to extend a pause on high mutual tariffs after talks in Sweden.
At a press conference in Stockholm on Tuesday, US Trade Representative Jamieson Greer announced that he would return to Washington to hold talks with President Donald Trump over the tariff pause, which is set to expire on August 12.
"Nothing is agreed until we speak with President Trump," Treasury Secretary Scott Bessent said.
Chinese trade representative Li Chenggang said that both sides will continue to advocate a "continued extension" of the tariff pause, according to the Xinhua official news agency.
However, he gave no indication as to when and for how long an extension could come into force.
In Tokyo, the Nikkei 225 was down 0.2% in late trade. The Shanghai Composite traded up 0.3%, while the Hang Seng Index in Hong Kong shed 0.9%. Sydney's S&P/ASX 200 was up 0.6%.
The pound rose to USD1.3351 early Wednesday, from USD1.3337 at the time of the London equities close on Tuesday. The euro rose to USD1.1554 from USD1.1537. Against the yen, the dollar faded to JPY147.94 from JPY148.38.
The yield on the 10-year US Treasury eased to 4.33% from 4.35%. The 30-year yield slimmed to 4.86% from 4.88%.
A barrel of Brent rose to USD71.61 from USD70.74, while gold eased slightly to USD3,326.51 an ounce from USD3,327.45.
In New York on Tuesday, the Dow Jones Industrial Average ended down 0.5%, the S&P 500 fell 0.3% and the Nasdaq Composite lost 0.4%.
Wednesday's local corporate calendar has half year results from defence manufacturer BAE Systems, pharmaceutical firm GSK, miner Glencore and housebuilder Taylor Wimpey.
By Eric Cunha, Alliance News news editor
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