2nd Jul 2025 06:55
(Alliance News) - London stocks are set to open higher on Wednesday following mixed trade on Wall Street on Tuesday, as the US halts some shipments of military aid to Ukraine and moves to challenge China's dominance on the supply chain of critical minerals.
IG says futures indicate the FTSE 100 to open up 23.1 points, 0.3% at 8,808.43 on Wednesday. The index of London large-caps closed up 24.37 points, 0.3%, at 8,785.33 on Tuesday.
In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average rising 0.9%, the S&P 500 fading 0.1% and the Nasdaq Composite slipping 0.8%.
Rally in most major indices across Europe and the US paused yesterday, as Trump-driven optimism began to sour under the rocky glare of the summer sun," commented Swissquote analyst Ipek Ozkardeskaya.
"Less-than-ideal news on both the trade and political fronts served as a sharp reminder that all is not rosy - that trade negotiations, and Trump's friendships, can turn into onion soup faster than you can say 'tariff' or 'DOGE'.
"Japan is experiencing it big time. Trade negotiations appear to be stuck over Japan’s unwillingness to buy Uncle Sam's rice. Tokyo now risks being slapped with 30–35% tariffs. Meanwhile, the EU seems willing to accept 10% tariffs in exchange for some exemptions - if that's Trump's will."
In Asia on Wednesday, the Nikkei 225 index in Tokyo fell 0.4%. In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong improved 0.5%. The S&P/ASX 200 in Sydney closed up 0.8%.
The yield on the US 10-year Treasury was quoted at 4.25%, narrowed from 4.26% on Tuesday. The yield on the US 30-year Treasury was quoted at 4.78%, slimmed from 4.79% on Tuesday.
The White House said Tuesday it is halting some key weapons shipments to Ukraine that were promised under the Biden administration for Kyiv's battle against the Russian invasion.
Stopping the delivery of munitions and other military aid including air defence systems likely would be a blow to Ukraine as it contends with some of Russia's largest missile and drone attacks of the three-year-old war.
"This decision was made to put America's interests first following a [Department of Defense] review of our nation's military support and assistance to other countries across the globe," White House Deputy Press Secretary Anna Kelly told AFP in an email.
The curtailment of military aid signals a possible shift in the priorities of US President Donald Trump, who has pressed for Russia and Ukraine to speed up stalled peace talks.
Sterling was quoted at USD1.3736 early Wednesday, higher than USD1.3705 at the London equities close on Tuesday.
The euro traded at USD1.1795 early Wednesday, higher than USD1.1770 late Tuesday. Against the yen, the dollar was quoted up at JPY143.70 versus JPY143.62.
The US, Japan, India and Australia pledged Tuesday to work together to ensure a stable supply of critical minerals, as worries grow over China's dominance in resources vital to new technologies.
US Secretary of State Marco Rubio welcomed his counterparts from the so-called "Quad" to Washington in a shift of focus to Asia, after spending much of his first six months on the wars in Ukraine and the Middle East and on President Donald Trump's domestic priorities such as migration.
The four countries said in a joint statement that they were establishing the Quad Critical Minerals Initiative, aimed at "collaborating on securing and diversifying" supply chains.
Gold was quoted at USD3,342.80 an ounce early Wednesday, higher than USD3,286.04 on Tuesday.
Brent oil was trading at USD67.06 a barrel early Wednesday, up from USD66.97 late Tuesday.
In Wednesday's corporate calendar, Topps Tiles is due to release a trading statement.
In the economic calendar on Wednesday, eurozone unemployment figures and ADP private payrolls figures in the US.
By Emily Parsons, Alliance News reporter
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