14th May 2025 06:43
(Alliance News) - London's FTSE 100 is set to open in the red on Wednesday, as new research reveals UK holidaymakers are tightening their purses amid concerns on living costs and following US President Donald Trump's lifting of sanctions on Syria.
IG says futures indicate the FTSE 100 to open down 23.0 points, 0.3% at 8,579.92 on Wednesday. The index of London large-caps closed down just 2.06 points at 8,602.92 on Tuesday.
Sterling was quoted at USD1.3303 early Wednesday, higher than USD1.3278 at the London equities close on Tuesday.
The euro traded up at USD1.1187 early Wednesday from USD1.1174 late Tuesday. Against the yen, the dollar was quoted down at JPY146.96 versus JPY147.84.
UK holidaymakers are trimming their budgets this summer and looking for ways to make their money stretch further amid economic and political uncertainty and worries about rising living costs, research suggests.
83% of people aim to cut back on their travel spending this summer, research for home-swapping platform Kindred found. 12% said they have managed to cut some of their holiday costs so far.
Among those who have saved money, 22% were worried about ongoing political or economic uncertainty, 40% were concerned about the increased cost of living, 36% were worried about rising travel costs and 30% were motivated to save on holidays by having less disposable income.
Meanwhile, the UK Financial Conduct Authority is proposing to strip "outdated or duplicated" requirements from its insurance rules, to help reduce costs for firms and encourage competition in the sector.
The regulator said the UK's insurance market could benefit from simpler, more straightforward requirements.
Proposals include no longer requiring companies to review the value of their product at least every 12 months; instead, they would use the risks and characteristics of each product to decide how often they review them. Specified minimum hours of training and development required for insurance and funeral plan employees would also be removed under the proposals.
Changes could support lower costs and wider access for the businesses and consumers who rely on insurance to manage risk, while maintaining appropriate levels of protection, the regulator said.
Thousands more civil servants are set to be moved out of London as the government seeks to cut costs and "radically reform the state".
Under plans announced on Wednesday, the government will cut the number of civil servants working in London by 12,000 and shift jobs to a series of new regional "campuses" across the country.
The changes will also see 11 government office buildings in London close, including one of its largest Westminster sites, in a move expected to save GBP94 million a year by 2032.
In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average fading 0.6%, the S&P 500 rising 0.7% and the Nasdaq Composite up 1.6%.
President Donald Trump announced the lifting of US sanctions on Syria and signed a massive arms deal with Saudi Arabia on Tuesday, as he kicked off his first major foreign trip since returning to the White House.
Speaking in the Saudi capital Riyadh, the first stop of a three-nation Middle East tour, Trump said the US would lift sanctions imposed on Syria, calling it a chance for the war-wracked country "to shine."
The high-profile visit to Riyadh also included the US and Saudi Arabia signing a USD142 billion arms deal, described by the White House as the largest defence sales agreement in US history.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was 0.9% higher, while the Hang Seng index in Hong Kong rose 2.0%. The S&P/ASX 200 in Sydney closed marginally lower.
European countries could impose new sanctions against Russia "in the coming days" if Moscow does not agree to a ceasefire in Ukraine, the French president has said.
Macron stressed that "no legal framework" existed to seize frozen Russian assets, adding that it was "not a good solution."
Gold was quoted at USD3,226.43 an ounce early Wednesday, down from USD3,250.97 on Tuesday.
Brent oil was trading at USD66.25 a barrel early Wednesday, slightly higher than USD66.21 late Tuesday.
In Wednesday's corporate calendar, half-year results from contract caterer Compass Group and full-year results from luxury goods retailer Burberry.
In the economic calendar on Wednesday, UK Bank of England Deputy Governor Sarah Breeden speaks at 08:15 BST and a US EIA crude oil stocks reading at 15:30 BST.
By Emily Parsons, Alliance News reporter
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