1st Aug 2025 06:58
(Alliance News) - Stocks in London are set to open lower Friday, after US President Donald Trump announced a new roster of tariffs.
IG says futures indicate the FTSE 100 to open down 26.4 points, 0.3%, at 9,106.41 on Friday. The index of London large-caps closed down 4.13 points at 9,132.81.
Sterling was quoted at USD1.3200 early Friday, slightly lower than USD1.3230 at the London equities close on Thursday.
The euro was lower at USD1.1433 on Friday from USD1.1442 late Thursday. Against the yen, the dollar was quoted at JPY150.51, up versus JPY150.48.
The yield on the 10-year US Treasury widened to 4.38% from 4.34%. The yield on the 30-year grew to 4.91% from 4.87%.
President Donald Trump ordered the reimposition of tariffs on dozens of trading partners.
However, in a minor reprieve that opens the door to further negotiations, the White House said these measures will take effect on August 7, not Friday as previously expected.
The steeper levels, varying by trading partner, go as high as 41% for Syria. Trump also adjusted some tariff levels threatened in April, with Switzerland now facing a higher 39% duty and Thailand a lower 19% rate.
The tariff on Taiwanese products was revised down to 20%, but President Lai Ching-te vowed to seek an even lower level. Trump separately hiked tariffs on Canadian goods to 35%, though indicating in an NBC interview he was open to further talks.
The UK Supreme Court is to rule on Friday on whether millions of motorists could be entitled to compensation on their hire-purchase agreements. The ruling is expected at 1635 BST.
Meanwhile, Heathrow Airport has said it can build a third runway for GBP21 billion within a decade.
The airport has submitted plans to the UK government for a new full-length runway, but insisted it is open to considering a shorter one.
The west London hub is seeking permission to open a new 3,500-metre runway to the north-west of its existing location.
This would enable an additional 276,000 flights per year, from 480,000 today to 756,000.
Heathrow also wants to create new terminal capacity for 150 million annual passengers, up from 84 million currently.
This would involve a new terminal complex named T5XW and T5XN, extending Terminal 2, and demolishing Terminal 3 and the old Terminal 1.
Heathrow said its runway and airfield plan would be privately funded at a cost of GBP21 billion. It attributed the increase from its estimate of GBP14 billion in 2018 to "construction inflation".
The total plan, including terminals and supporting infrastructure, would be expected to cost GBP49 billion.
Overnight, earnings season continued to unfold as Apple and Amazon reported their latest figures.
Apple beat earnings expectations with sales growth across all regions and products.
The Cupertino, California-based technology company said net income rose 9.2% to USD23.43 billion in its third quarter ended June 30 from USD21.45 billion a year prior.
Basic and diluted earnings per share climbed to USD1.57 from USD1.40. Apple reported third quarter net sales of USD94.04 billion, up 9.6% on-year from USD85.78 billion.
The firm raised its third quarter dividend to USD0.26 from USD0.25. It did not provide guidance in its report.
Amazon said artificial intelligence is changing the customer experience as it delivered better-than-expected second quarter sales, although a soft profit guide kept a lid on the share price.
The Bellevue, Washington-based technology and ecommerce company said first quarter net income rose 35% to USD18.16 billion from USD13.49 billion a year prior.
Net sales improved 13% to USD167.70 billion from USD147.98 billion, comfortably beating the USD162.05 billion FactSet consensus. Second quarter diluted earnings per share was USD1.68 compared to USD1.26 a year prior, and ahead of USD1.32 FactSet consensus.
Looking ahead, the world's largest online retailer said sales are expected to be between USD174.0 billion and USD179.5 billion in the third quarter, year-on-year growth between 10% and 13%, and ahead of consensus for USD172.8 billion.
Operating income is expected to be between USD15.5 billion and USD20.5 billion, compared with USD17.4 billion in the third quarter 2024 and LSEG consensus of USD19.48 billion.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.7%. In China, the Shanghai Composite was 0.6% lower, while the Hang Seng index in Hong Kong fell 0.8%. The S&P/ASX 200 in Sydney lost 0.9%.
Gold was higher at USD3,295.40 an ounce early Friday from USD3,292.45 on Thursday.
Brent oil was trading at USD71.70 a barrel, up from USD71.11.
Friday's local corporate calendar has half-year results from IMI, Pearson, Intertek and Melrose Industries.
The global economic calendar on Friday has a eurozone manufacturing purchasing managers' index reading at 0900, followed by the UK at 0930. Later, there is the consumer price index for the eurozone, with manufacturing PMI and nonfarm payrolls in the US.
By Michael Hennessey, Alliance News reporter
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