26th Sep 2025 06:59
(Alliance News) - Stocks in London are set to open higher on Friday, following a stronger-than-expected US GDP reading on Thursday and ahead of US personal consumption expenditures figures later in the day.
IG says futures indicate the FTSE 100 to open up 22.2 points, 0.2%, at 9236.18 on Friday. The index of London large-caps closed down 36.45 points, 0.4%, at 9,213.98 on Thursday.
Recruiters are urging Chancellor Rachel Reeves to use her autumn budget to tap into growing confidence among employers. The Recruitment & Employment Confederation said confidence in making investment and hiring decisions increased in recent months.
Its survey of more than 700 employers showed they were "less gloomy" than they had been, although concerns about the economy remained.
Rec Chief Executive Neil Carberry said: "Today's report shows the potential rewards if government makes it easier for firms to invest and create jobs, and growth, which creates better tax receipts, is also the only way out of the fiscal straitjacket the Treasury finds itself in."
Sterling was quoted at USD1.3355 early Friday, higher than USD1.3348 at the London equities close on Thursday.
The euro traded slightly up at USD1.1678 early Friday, against USD1.1676 late Thursday. Against the yen, the dollar was quoted lower at JPY149.69 versus JPY149.74.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average falling 0.4%, the S&P 500 shedding 0.5% and the Nasdaq Composite also losing 0.5%.
Swissquote analyst Ipek Ozkardeskaya said Thursday's US gross domestic product report was "just a bit too strong for investors' liking". GDP rose 3.8% quarter-on-quarter on an annualised basis in the three months to June, upwardly revised from a 3.3% rise previously reported.
Ozkardeskaya continued: "On the surface, strong GDP should be good news but the problem is, such strong growth doesn't support further Federal Reserve rate cuts, and it could even boost inflation expectations on top of potential tariff-led pressures.
"Understandably, October rate cut expectations took a hit after the GDP release. The probability of a cut fell from around 94% to below 88%. The US 2-year yield - the best proxy for Fed expectations - rebounded to 3.67%, its highest since early September.
"The dollar index rallied past its 100-[day moving average] as Fed expectations were reassessed, while major US indices retreated from all-time highs but managed to recover part of the early losses. Dip buyers found a reason to step in - namely, the inflation component, which was more contained than feared, near 2%."
US President Donald Trump has announced new tariffs on pharmaceuticals, heavy trucks, home renovation fixtures and furniture. Starting October 1, the US will impose a 100% tariff on branded or patented pharmaceutical products manufactured outside the US.
Meanwhile, heavy trucks will face a 25% tariff, and home renovation fixtures will face a 50% rate. "Additionally, we will be charging a 30% Tariff on Upholstered Furniture," Trump added on a Truth Social post.
In Asia on Friday, the Nikkei 225 index in Tokyo slipped 0.6%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong was 0.5% lower. The S&P/ASX 200 in Sydney improved marginally.
Gold was quoted at USD3,747.03 an ounce early Friday, higher than USD3,729.67 on Thursday.
Brent oil was trading at USD68.70 a barrel early Friday, lower than USD69.15 late Thursday.
In Friday's corporate calendar, half-year results from life sciences company Ondine Biomedical and London-based miner and marketer of coloured gemstones, Gemfields Group.
In the economic calendar on Friday, US personal consumption expenditures figures and the Michigan consumer sentiment index.
By Emily Parsons, Alliance News reporter
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