23rd May 2025 07:01
(Alliance News) - Stocks in London are set to open higher on Friday, following a boost in UK consumer confidence in May and ahead of talks amongst Southeast Asian leaders on Monday.
IG says futures indicate the FTSE 100 to open up 26.50 points, 0.3%, at 8,765.76 on Friday. The index of London large-caps closed down 47.20 points, 0.5%, at 8,739.26 on Thursday.
Sterling was quoted at USD1.3453 early Friday, higher than USD1.3425 at the London equities close on Thursday.
The euro traded at USD1.1318 early Friday, up from USD1.1285 late Thursday. Against the yen, the dollar was quoted lower at JPY143.48 versus JPY143.81.
UK consumer confidence increased in May as turbulence around April's US tariffs calmed, but comes amid warnings that inflation could mean relief is short-lived.
GfK's long-running consumer confidence index increased by three points but remains firmly in negative territory at minus 20.
The improvement was driven by a five-point increase in confidence in personal finances over the coming year to positive two – although still five points worse than this time last year – and a four-point boost in the outlook for the general economy to minus 16 points, worse than last May.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average marginally lower, the S&P 500 down slightly and the Nasdaq Composite up 0.3%.
The yield on the US 10-year Treasury was quoted at 4.54%, narrowing from 4.57% late Thursday. The yield on the US 30-year Treasury was quoted at 5.05%, narrowing from 5.08%.
"The selloff in US equities eased yesterday as pressure in the bond space declined. But the news is far from reassuring for a sustainable relief: US politicians continue to turn a blind eye to the stress building in the sovereign bond space," commented Swissquote analyst Ipek Ozkardeskaya.
"The House of Representatives passed Trump’s ‘beautiful’ tax bill yesterday—with just one vote. But one vote is all it takes to send the bill to the Senate, which is narrowly controlled by the same Republicans who proposed it.
"In case you missed it, the bill aims to cut spending on social welfare and climate-friendly programs in order to fund tax cuts. The thing is, even if it gets through the Senate, it still has to pass the bond market test. Investors in US Treasuries are increasingly uncomfortable with the country’s ballooning debt, and may not be willing to finance Trump’s budget ambitions without demanding higher yields."
In Asia on Friday, the Nikkei 225 index in Tokyo improved 0.6%. In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was 0.6% higher. The S&P/ASX 200 in Sydney closed up 0.2%.
Southeast Asian leaders will express deep concern over US President Donald Trump's tariff blitz when they meet at a summit on Monday, warning that the unilateral move posed huge challenges to economic growth and stability in the region, according to a draft statement seen by AFP.
Trump's tariffs has roiled global markets and upended international commerce, and left leaders from the 10-member ASEAN bloc scrambling for ways to limit the fallout on their trade-dependent economies.
The bloc is also caught between the trade battle between their biggest trading partners, the US and China, on which Washington has heaped the highest tariffs.
After the bloc's meeting on Monday, the leaders are to hold a one-day summit with China and Middle Eastern oil producers.
Gold was quoted at USD3,322.69 an ounce early Friday, higher than USD3,289.44 on Thursday.
Brent oil was trading at USD64.04 a barrel early Friday, broadly flat against USD64.05 late Thursday.
In Friday's corporate calendar, half-year results from trading platform AJ Bell.
In the economic calendar on Friday, UK retail sales and UK consumer confidence figures, and US new homes data.
By Emily Parsons, Alliance News reporter
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