5th Aug 2025 06:56
(Alliance News) - London's FTSE 100 is set to open higher on Tuesday after New York stocks rallied on Monday, while Asian markets also remain in the green following upbeat business activity readings in Japan and China.
IG says futures indicate the FTSE 100 to open up 35.9 points, 0.4%, at 9,164.2 on Tuesday. The index of London large-caps closed up 59.72 points, 0.7%, at 9,128.30 on Monday.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average gaining 1.3%, the S&P 500 improving 1.5% and the Nasdaq Composite jumping 2.0%.
"Markets spent little time absorbing last Friday's payroll shock. After the headline jobs miss nudged investors toward trimming size positioning, the play has shifted into a more defensive gear across assets yet with a growing conviction that the Fed will soon extend a policy safety net with two or three rate cuts by year end," commented Pepperstone analyst Ahmad Assiri.
"Volatility over the coming sessions will revolve around three intertwined factors, oil dynamics after OPEC+ unwind voluntary restraint, just as Washington escalates pressure on buyers of discounted Russian crude such as India. Second, the next US employment report which could confirm whether labour market strength is fading faster than the Fed's own forecasts as well as next week's CPI. Third, the trajectory of Treasury yields and the dollar."
Brent oil was trading at USD68.73 a barrel early Tuesday, lower than USD69.20 late Monday.
The yield on the US 10-year Treasury was at 4.21%, trimmed from 4.22%. The yield on the US 30-year Treasury was 4.80%, narrowed from 4.81% late Monday.
Sterling was quoted at USD1.3276 early Tuesday, down against USD1.3287 at the London equities close on Monday.
The euro traded lower at USD1.1548 early Tuesday, from USD1.1568 late Monday. Against the yen, the dollar was quoted down at JPY147.19 versus JPY147.30.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.6%. In China, the Shanghai Composite rose 0.8%, while the Hang Seng index in Hong Kong was 0.6% higher. The S&P/ASX 200 in Sydney gained 1.2%.
China's services sector expanded at a faster pace in July, but a contraction in manufacturing weighed on overall business activity, S&P Global reported Tuesday.
The S&P Global China composite purchasing managers' index fell to 50.8 in July, down from 51.3 in June. A reading above the 50.0 neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction.
The services PMI rose to 52.6 in July, up from 50.6 in June and above the FXStreet-cited consensus forecast of 50.2.
Similarly, Japanese business activity also expanded in July, supported by growth in the services sector. The S&P Global Japan composite purchasing managers' index edged up to 51.6 in July from 51.5 in June. Specifically, the services PMI rose to 53.6 in July, up from 51.7 in June.
Gold was quoted at USD3,370.30 an ounce early Tuesday, slightly lower than USD3,372.82 on Monday.
In Tuesday's corporate calendar, half year results from oil major BP and miner Fresnillo plus full year results from Guinness owner Diageo.
In the economic calendar on Tuesday, a slew of composite PMI readings, new car sales figures in the UK and trade balance data in the US.
By Emily Parsons, Alliance News reporter
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