25th Mar 2025 06:52
(Alliance News) - Stocks in London are set to open lower on Tuesday, following new threats of US tariffs on Venezuelan oil and renewed investor hope as Wall Street closed in the green on Monday, led by the technology sector.
IG says futures indicate the FTSE 100 to open down 27.0 points, 0.3%, at 8,611.01 on Tuesday. The index of London large-caps closed down 8.78 points, 0.1% at 8,638.01 on Monday.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.4%, the S&P 500 1.8% higher and the Nasdaq Composite up 2.3%.
"Investors welcomed news that the US government might implement tariffs in a more selective manner rather than imposing them broadly across multiple industries. Specifically, President Trump announced that he would soon unveil new tariffs on automobiles, aluminium, and pharmaceuticals, while also hinting that certain sectors could receive exemptions or face lower-than-expected tariff rates," commented XS.com analyst Linh Tran.
"This development helped ease concerns about the potential negative impact on supply chains and economic growth, particularly for businesses heavily reliant on imported raw materials. However, markets are still awaiting further details to assess the true extent of these policy measures.
"As a result, major technology stocks saw a notable rebound, led by Tesla, which surged nearly 12%, marking its strongest session since November 2024. Meanwhile, Nvidia and Apple rose by 1.13% and 3.15%, respectively, as investors rotated back into growth stocks following a recent market pullback."
Sterling was quoted at USD1.2918 early Tuesday, higher than USD1.2906 at the London equities close on Monday.
The euro traded at USD1.0795 early Tuesday, slightly up from USD1.0791 late Monday. Against the yen, the dollar was quoted broadly flat at JPY150.57 versus JPY150.56.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.6%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was 2.0% lower. The S&P/ASX 200 in Sydney closed up 0.1%.
Gold was quoted at USD3,016.49 an ounce early Tuesday, improving from USD3,011.44 on Monday.
Brent oil was trading at USD72.80 a barrel early Tuesday, easing from USD72.98 late Monday.
"Crude oil prices have seen a notable uptick, influenced by Trump's threats to impose tariffs on Venezuelan oil importers. This development has pushed the price to hover near USD73 per barrel, reflecting market repricing of reduced Venezuelan supplies and diminishing demand for the sanctioned source. Oil price is expected to encounter pressure around the USD73.5 per barrel mark, a resistance range that could curb the upward buying momentum amidst slowing economic growth and persistent inflation pressures," said Pepperstone analyst Ahmad Assiri.
US President Donald Trump announced Monday steep tariffs on imports from countries buying Venezuelan oil and gas, a punitive measure that could hit China and India, among others, and sow fresh global trade uncertainty.
The latest across-the-board 25% levies targeting direct and indirect buyers of Venezuelan oil could take effect as soon as April 2.
Assiri continued: "An easing of inflationary pressures, combined with improved consumer sentiment, could boost spending confidence, driving oil prices into the mid-seventies range. However, this optimistic outlook is clouded by the unpredictability of tariff headlines, which can change daily, posing an incredible challenge in forecasting price movements as the market anticipates 'Liberation Day' on April 2nd."
In Tuesday's corporate calendar, Kingfisher and AG Barr are due to release full year earnings, while Ocado Group is scheduled to publish a trading statement.
In the economic calendar on Tuesday, the US house price index at 1300 GMT, and US new home sales, the US Richmond Fed manufacturing index and the US Conference Board consumer confidence readings at 1400 GMT.
By Emily Parsons, Alliance News reporter
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