11th Mar 2025 06:56
(Alliance News) - Stocks in London are set to open higher on Tuesday, recovering some losses from Monday and shaking off a sell-off in New York.
IG says futures indicate the FTSE 100 to open 28.6 points higher, 0.3%, at 8,629.00 on Tuesday. The index of London large-caps closed down 79.66 points, 0.9%, at 8,600.22 on Monday.
Sterling traded at USD1.2894 on Tuesday morning, largely unmoved from USD1.2897 at the time of the London equities close on Monday. The euro rose to USD1.0862 from USD1.0838. Against the yen, the dollar was largely flat at JPY147.24 from JPY147.27.
A barrel of Brent fell to USD69.41 from USD69.54, while gold slipped slightly to USD2,900.81 an ounce from USD2,903.30.
In New York on Monday, the Dow Jones Industrial Average tumbled 2.1%, the S&P 500 plunged 2.7% and the Nasdaq Composite slumped 4.0%.
"The market is currently experiencing stagflation—a combination of high inflation and slowing economic growth—which is eroding investor confidence. Recent economic data shows that consumer prices continue to rise, while GDP growth has shown signs of stagnation. This has sparked fears that the economy could enter a prolonged recession if appropriate support measures are not implemented. As a result, the stock market remains in a downward trend, with the S&P 500 losing more than 8% since its peak on February 19," XS.com Linh Tran commented.
"The ongoing U.S.-China trade tensions are further exacerbating the situation. Tough tariff policies from both sides are negatively impacting global supply chains and increasing production costs, adding more pressure on businesses and financial markets. Without signs of improvement in trade negotiations, the economy may face even greater risks."
Over the weekend, US President Donald Trump declined to rule out a recession this year.
"I hate to predict things like that," he told Fox News when asked directly about a possible recession in 2025.
"There is a period of transition, because what we're doing is very big – we're bringing wealth back to America," he said, adding, "It takes a little time."
Sell-offs in the US led to nervy trade in Asia. In Tokyo, the Nikkei 225 lost 0.7%, while the S&P/ASX 200 in Sydney gave back 0.9%. The Shanghai Composite was up 0.2, recovering lost ground in late afternoon trade. The Hang Seng Index in Hong Kong shed 0.6%.
Tuesday's UK corporate calendar sees full-year results from housebuilder Persimmon and industrial equipment manufacturer Rotork.
By Eric Cunha, Alliance News news editor
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