8th Sep 2025 06:54
(Alliance News) - Stocks in London are set to open higher on Monday, after US labour market numbers at the end of last week put a chunkier Federal Reserve cut on the table for this month.
IG says futures indicate the FTSE 100 to open 23.9 points higher, 0.3%, at 9,232.11 on Monday. The index of London large-caps closed down 8.66 points, 0.1%, at 9,208.21 on Friday.
The pound traded at USD1.3499 early Monday, down from USD1.3527 late Friday. The euro bought USD1.1716, falling from USD1.1743.
"Friday's US labor market report finally dispelled any remaining doubts about whether the Fed would cut interest rates soon, briefly pushing EUR-USD above the 1.1750 mark. Only one of the 80 analysts surveyed by Bloomberg had expected an even worse figure. A 25 basis point cut on September 17 is now fully priced into the market. Some now even see a chance that the Fed could deliver a 50 basis point cut," Commerzbank analyst Thu Lan Nguyen commented.
"However, there is a residual risk: new US inflation data is also due to be released this week. In recent months, this data has shown only a moderate effect of US tariffs. The probability therefore seems high that this will remain the case. However, the surprisingly abrupt deterioration in the US labour market has just shown that the effects of US policy do not necessarily have to be gradual."
According to the Bureau of Labor Statistics, nonfarm payroll employment increased by 22,000 in August, easing from 79,000 in July.
The July reading was upwardly revised from 73,000, however, June's reading was knocked to 14,000 from 27,000.
The latest data fell short of the FXStreet cited consensus of 75,000.
In Tokyo, the Nikkei 225 was up 1.5% late Monday. Sydney's S&P/ASX 200 was down 0.3%. The Shanghai Composite was up 0.1%, while the Hang Seng Index in Hong Kong added 0.4%.
China's exports expanded 4.4% year-on-year in August, General Administration of Customs data showed Monday, as the world's second-largest economy navigated an uneasy trade war truce with the US.
The increase in China's overseas shipments last month fell below a Bloomberg forecast of 5.5%.
Imports similarly did not meet expectations, growing 1.3% year-on-year in August, compared with a forecast of 3.4%.
Japan's economy grew at a stronger rate than was previously thought, revised data showed Monday.
According to the second release of preliminary estimates from Japan's Cabinet Office, the country's gross domestic product is now estimated to have grown 0.5% quarter-on-quarter, accelerating from 0.1% in the prior quarter and beating the prior estimate of 0.3%.
Japan's Prime Minister Shigeru Ishiba said on Sunday he would step down after less than a year in power, during which he lost his majority in both houses of parliament.
The announcement means fresh uncertainty for the world's fourth-largest economy as it battles rising food prices and deals with the fallout of US tariffs on its vital auto sector.
"Now that negotiations on US tariff measures have reached a conclusion, I believe this is the appropriate moment," Ishiba told a news conference.
"I have decided to step aside and make way for the next generation," he said.
Against the yen, the buck rose to JPY148.08 early Monday from JPY146.94 at the time of the London equities close on Friday.
In New York on Friday, the Dow Jones Industrial Average ended down 0.5%, the S&P 500 lost 0.3% and the Nasdaq Composite ended slightly lower.
The yield on the 10-year US Treasury widened to 4.09% early Monday, from 4.07% at the time of the London equities close Friday. The yield on the 30-year eased to 4.78% from 4.79%.
A barrel of Brent rose to USD66.38 from USD65.14. Gold fetched at USD3,588.11 an ounce, down slightly from USD3,589.49.
Monday's local corporate calendar has half year results from insurer Phoenix Group.
By Eric Cunha, Alliance News news editor
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