28th May 2025 06:50
(Alliance News) - London's FTSE 100 is set to open higher on Wednesday, following a Wall Street rally on Tuesday as US President Donald Trump warns Vladimir Putin he is "playing with fire".
IG says futures indicate the FTSE 100 to open up 4.1 points, 0.1% at 8,782.15 on Wednesday. The index of London large-caps closed up 60.08 points, 0.7%, at 8,778.05 on Tuesday.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.8%, the S&P 500 rising 2.1%, and the Nasdaq Composite jumping 2.5%.
The yield on the US 10-year Treasury was quoted at 4.47% early Wednesday UK time, widening from 4.46% at the time of the London equities close on Tuesday. The yield on the US 30-year Treasury widened to 4.98% from 4.96%.
US President Donald Trump warned Vladimir Putin on Tuesday that he was "playing with fire," launching a fresh broadside at his Russian counterpart over stalled Ukraine peace efforts. Trump's latest comments came after he called the Kremlin leader "CRAZY" over the weekend following a mass Russian air attack on Kyiv, and warned that Moscow risked new sanctions.
"What Vladimir Putin doesn't realize is that if it weren't for me, lots of really bad things would have already happened to Russia, and I mean REALLY BAD," Trump said on his Truth Social network Tuesday. "He's playing with fire!"
Meanwhile, Ukrainian President Volodymyr Zelensky is expected in Berlin for a meeting with new German Chancellor Friedrich Merz on Wednesday, according to media reports.
The two leaders intend to discuss possible steps towards further "technical" talks between Ukraine and Russia, the magazine Der Spiegel reported. The visit has not yet been officially confirmed by Kiev or Berlin.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.2%. In China, the Shanghai Composite rose 0.2%, while the Hang Seng index in Hong Kong slipped 0.4%. The S&P/ASX 200 in Sydney closed down 0.1%.
Gold was quoted at USD3,306.18 an ounce early Wednesday, up from USD3,295.13 on Tuesday.
"Naturally, the positive risk tone posed a headwind for gold, though the yellow metal only traded back to where we were on Friday morning, so the downside is hardly worth panicking about, and I still like having some gold exposure as a hedge, given how volatile everything remains, and as institutions, especially in EM, continue to show demand for bullion amid a desire to diversify reserve holdings," commented Pepperstone analyst Michael Brown.
Sterling was quoted at USD1.3468 early Wednesday, lower than USD1.3515 at the London equities close on Tuesday.
The euro traded at USD1.1297 early Wednesday, down from USD1.1337 late Tuesday. Against the yen, the dollar was quoted up at JPY144.54 versus JPY144.22.
Brown continued: "The broadly stronger dollar, which rode on the coattails of the 'buy America' theme, also posed a headwind to gold, with the greenback firmer against all major peers on the day. I find it notable that the dollar’s typical correlations with external drivers, such as equities and Treasuries, have all-but-broken down of late. Not only does this make the life of a strategist a rather difficult one, it also suggests that deficit worries, and the volatile nature of US policymaking, might be playing an even greater role than we'd thought."
Brent oil was trading at USD63.82 a barrel early Wednesday, higher than USD63.14 late Tuesday.
In Wednesday's corporate calendar, a trading statement from B&Q owner Kingfisher.
In the economic calendar on Wednesday, a German unemployment reading at 0855 BST and the US Richmond Fed manufacturing index at 1500 BST.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.