22nd Sep 2025 06:57
(Alliance News) - London blue chips are set to open slightly lower on Monday, after record highs on Wall Street at the end of last week and as investors weigh a potential intensification of geopolitical tensions following the UK's recognition of a Palestinian state.
IG says futures indicate the FTSE 100 to open down 4.1 points at 9,212.57 on Monday. The index of London large-caps closed down 11.44 points, 0.1%, at 9,216.67 on Friday.
Sterling was quoted at USD1.3467 early Monday, lower than USD1.3475 at the London equities close on Friday.
The euro traded at USD1.1733 early Monday, down from USD1.1746 late Friday. Against the yen, the dollar was quoted up at JPY148.25 versus JPY147.89.
"The week kicks off on a mixed note. Last week's Federal Reserve rate cut gave markets a boost, but news that the Bank of Japan will begin reducing its ETF holdings unsettled global risk sentiment on Friday", commented Swissquote analyst Ipek Ozkardeskaya. "The Nikkei came under notable selling pressure, the Stoxx 600 and FTSE 100 traded slightly bearish, but Wall Street shrugged it off: the S&P 500 and Nasdaq both advanced to fresh record highs as the US 2-year yield consolidated just below 3.60% and the 10-year rose to 4.41%."
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average gaining 0.4%, the S&P 500 advancing 0.5% and the Nasdaq Composite rising 0.7%.
Ozkardeskaya added: "On the geopolitical front, Trump and Xi reportedly held a constructive call. Details remain scarce, but progress was reported on TikTok, and the two leaders will revisit trade and tariffs in the coming weeks. Meanwhile, Australia, Canada and UK recognized the state of Palestine that could revive geopolitical tensions as the move didn't please Israel and the US."
In Asia on Monday, the Nikkei 225 index in Tokyo improved 1.2%. In China, the Shanghai Composite was slightly higher, while the Hang Seng index in Hong Kong shed 0.9%. The S&P/ASX 200 in Sydney edged up 0.4%.
China's central bank on Monday left its key lending rates unchanged following the latest meeting of the Monetary Policy Committee.
The People's Bank of China kept its one-year loan prime rate unchanged at 3.0% and the five-year LPR at 3.5%. The decision was in line with the consensus forecast cited by FXStreet.
Gold was quoted at USD3,698.20 an ounce early Monday, higher than USD3,670.59 on Friday.
Brent oil was trading higher at USD67.08 a barrel early Monday, against USD66.56 late Friday.
In Monday's corporate calendar, Wilmington reports full-year and BioPharma Credit reports half-year results.
In the economic calendar on Monday, eurozone consumer confidence data and the US Chicago Fed national activity index.
By Emily Parsons, Alliance News reporter
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