9th May 2025 06:47
(Alliance News) - Stocks in London are set to open higher on Friday, as a US-UK trade agreement has lifted ahead of talks between officials from the US and China.
IG says futures indicate the FTSE 100 to open 28.3 points higher, 0.3%, at 8,559.91 on Friday. The index of London large-caps ended down 27.72 points, 0.3%, at 8,531.61 on Thursday.
The pound fell to USD1.3230 early Friday, from USD1.3295 at the time of the London equities close on Thursday. The euro faded to USD1.1224 from USD1.1265. Against the yen, the dollar climbed to JPY145.53 from JPY145.15.
"The dollar's strength reflects growing market expectations that the Federal Reserve will maintain a cautious policy stance. Investors are closely watching for upcoming signals, as the Fed is expected to provide further guidance on its rate path. While expectations for a rate cut in September persist, this probability remains fluid and highly sensitive to new macroeconomic data," XS.com analyst Linh Tran commented.
In New York, both the Dow Jones Industrial Average and the S&P 500 ended up 0.6% on Thursday. The Nasdaq Composite climbed 1.1%.
In Tokyo, the Nikkei 225 was up 1.5% in late trade. In China, the Shanghai Composite was down 0.1% in afternoon dealings, while the Hang Seng Index was 0.2% higher. The S&P/ASX 200 traded up 0.6%.
"The main catalyst behind the risk-on mood is confirmation from US President Donald Trump of a new trade agreement between the US and the United Kingdom, alongside signals of potential tariff reductions on Chinese goods, which are bolstering hopes ahead of upcoming US-China trade talks in Switzerland in the coming days. Cautious optimism is spreading across markets and capital flows may shift toward Asia during Friday's session. The prospect of lower China tariffs and tangible progress with the UK may be enough to ignite further appetite for risk assets," ActivTrades analyst Anderson Alves commented.
China said Friday its exports rose 8.1% in April, topping forecasts, as the country fought a gruelling trade war with the US and as both sides prepared for high-level talks at the weekend.
Analysts polled by Bloomberg had expected exports to rise just 2.0% last month.
Imports also beat expectations, dropping 0.2%, compared with the 6.0% slide analysts had estimated.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet Chinese Vice Premier He Lifeng in Switzerland on Saturday and Sunday, marking the first talks between the superpowers since Trump unveiled his tariffs.
A barrel of Brent rose to USD63.16 early Friday from USD62.75 late Thursday. Gold faded to USD3,317.44 an ounce from USD3,340.18.
Friday's local corporate calendar has first quarter results from British Airways owner IAG and a trading statement from online property portal, Rightmove.
By Eric Cunha, Alliance News news editor
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