8th Jul 2025 06:56
(Alliance News) - Stocks in London are set to open lower on Tuesday, with some tariff nerves still hanging over European equities, despite a suggestion that the implementation of US trade curbs could be delayed.
IG says futures indicate the FTSE 100 to open down 15.4 points, 0.2%, at 8,791.13 on Tuesday. The index of London large-caps closed down 16.38 points, 0.2%, at 8,806.53.
Peers in Paris and Frankfurt are called to open flat.
The pound fell to USD1.3628 on Tuesday morning, from USD1.3641 at the time of the London equities close on Monday. The euro edged up to USD1.1739 from USD1.1735. Against the yen, the dollar rose to JPY146.04 from JPY145.86.
US President Donald Trump said on Monday he may delay planned tariffs on several countries beyond the newly set deadline of August 1.
Asked whether the new date was firm, Trump told reporters: "I would say firm, but not 100%."
"If they call up and they say we'd like to do something a different way, we're going to be open to that," he added.
Trump said letters sent to over a dozen countries - including Japan, South Korea and South Africa - outlining planned tariffs were "final," but added: "If they call with a different offer, and I like it, then we'll do it."
On Monday, Trump moved the imposition of high tariffs on trading partners from July 9 to August 1.
ING analysts commented: "US President Donald Trump has released a long list of new letters, bringing tariffs basically back to levels presented on 'liberation day'. Despite sending a take-it-or-leave-it tone, the letters actually represent a shift in the deadline from 9 July to now 1 August to still strike a deal with the US. So far, the EU has not received a letter."
"The letters also warn against any retaliation, threatening to add any retaliatory tariffs on top of the just announced tariffs. Also, the US administration announced that sectoral tariffs could still come on top of these announced new tariffs."
The European Commission said EU chief Ursula von der Leyen had a "good exchange" with Trump on trade when the pair spoke Sunday.
Trump sent letters to 14 countries, mainly in Asia, informing them that higher import tariffs will come into effect on August 1 unless they reach a deal with the US.
Countries that have large trade imbalances with the US have been key targets, including Japan (USD68.5 billion surplus in 2024), South Korea (USD66 billion), Thailand (USD45.6 billion) and Indonesia (USD17.9 billion).
The yield on the US 10-year Treasury was quoted at 4.39% early Tuesday UK time, where it stood at the time of the London equities close on Monday. The yield on the US 30-year Treasury was quoted at 4.92%, also unchanged.
In New York on Monday, the Dow Jones Industrial Average ended down 0.9%, the S&P 500 lost 0.8% and the Nasdaq Composite shed 0.9%.
IN Tokyo on Tuesday, the Nikkei 225 was 0.2% higher. In China, Shanghai Composite was up 0.6% while the Hang Seng Index in Hong Kong was 0.7% higher. The S&P/ASX 200 in Sydney was down 0.2%.
The Reserve Bank of Australia left interest rates unmoved on Tuesday, defying expectations of a cut.
The RBA maintained the cash rate at 3.85%, though a cut to 3.60% was expected, according to consensus cited by FXStreet.
The RBA said: "The board continues to judge that the risks to inflation have become more balanced and the labour market remains strong. Nevertheless it remains cautious about the outlook, particularly given the heightened level of uncertainty about both aggregate demand and supply.
"The board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5% on a sustainable basis. It noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia."
A barrel of Brent rose to USD69.07 early Tuesday, from USD68.84 late Monday afternoon. Gold traded at USD3,335.76 an ounce, up from USD3,320.60.
On the UK corporate calendar, student accommodation operator Unite Group releases a trading statement.
By Eric Cunha, Alliance News news editor
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