6th May 2025 06:51
(Alliance News) - Stocks in London are set to open lower on Tuesday following a long bank holiday weekend, as UK consumer confidence tumbles and new German chancellor Friedrich Merz is due to be sworn in.
IG says futures indicate the FTSE 100 to open down 7.1 points, 0.1%, at 8,589.25 on Tuesday. The index of London large-caps closed up 99.55 points, 1.2%, at 8,596.35 on Friday.
Sterling was quoted at USD1.3293 early Tuesday, slightly lower than USD1.3296 at the London equities close on Friday.
The euro traded down at USD1.1316 early Tuesday, from USD1.1341 late Friday. Against the yen, the dollar was quoted lower at JPY143.79 versus JPY144.36.
Germany's conservative leader Friedrich Merz is set to be sworn in as chancellor on Tuesday with a mission to revive the ailing economy and boost the diplomatic standing of the EU's most populous country.
As US President Donald Trump has upended long-standing security and trade ties and reached out to Russia to end the Ukraine war, Merz has vowed to strengthen Berlin's role in Europe as it responds to increasingly turbulent times.
In a session from 0900 CEST, or 0800 BST, Merz will seek a majority in the 630-seat Bundestag to become modern Germany's 10th chancellor.
Once confirmed by President Frank-Walter Steinmeier, he is then set to deliver the oath of office at noon.
In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average declining 0.2%, the S&P 500 falling 0.6% and the Nasdaq Composite 0.7% lower.
Half of all company profit warnings in April flagged a hit from the mounting global trade war amid the fallout from US President Donald Trump's sweeping tariff hikes, according to new figures from EY-Parthenon.
Firms issuing warnings last month also saw their share price drop by 19% on average as the fears over global trade disruption sparked stock market turmoil.
Meanwhile, consumer confidence in the future of the UK economy has plummeted to its lowest level since the height of the cost-of-living crisis, according to a survey.
64% of consumers believe the economy will get worse before it gets better, according to the Which? Consumer Insight Tracker.
Confidence fell by seven points to minus 53 in April – its lowest level since December 2022 when the cost-of-living crisis was at its height and the inflation rate was above 10%.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was closed for Greenery Day, after being closed for Children's Day on Monday. In China, the Shanghai Composite improved 1.0%, while the Hang Seng index in Hong Kong edged up 0.8%. The S&P/ASX 200 in Sydney closed 0.1% higher.
Gold was quoted higher at USD3,354.31 an ounce early Tuesday, from USD3,249.91 on Friday.
Brent oil was trading slightly higher at USD61.09 a barrel early Tuesday, from USD61.07 late Friday.
In Tuesday's corporate calendar, full-year results from e-commerce investor Huddled Group and communications firm Maintel Holdings.
In the economic calendar on Tuesday, UK composite PMI at 0930 BST and US trade balance at 1330.
By Emily Parsons, Alliance News reporter
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