29th May 2025 06:47
(Alliance News) - London's FTSE 100 is set to open firmly in the green on Thursday, as a federal US court moves to block most of President Donald Trump's tariffs from taking effect.
IG says futures indicate the FTSE 100 to open up 75.6 points, 0.9%, at 8,801.61 on Thursday. The index of London large-caps closed down 52.04 points, 0.6%, at 8,726.01 on Wednesday.
Sterling was quoted at USD1.3436 early Thursday, higher than USD1.3465 at the London equities close on Wednesday.
The euro traded up at USD1.1245 early Thursday, lower than USD1.1294 late Wednesday. Against the yen, the dollar was quoted higher at JPY145.84 versus JPY144.95.
The yield on the US 10-year Treasury was quoted at 4.51% early Thursday UK time, widening from 4.49% at the time of the London equities close on Wednesday. The yield on the US 30-year Treasury was flat at 4.99%.
A US federal court on Wednesday blocked most of President Donald Trump's sweeping import tariffs from going into effect, ruling that the president had overstepped his authority with the across-the-board global levies.
The ruling marks a significant setback to the Republican leader as he bids to redraw the US' trading relationship with the world by forcing foreign governments to the negotiating table through a series of tough new levies.
The court's order could spell a premature end to Trump's international trade war as it bars Trump's most sweeping tariffs, effectively erasing most of the trade restrictions Trump has announced since taking office.
In response, the Trump administration on Wednesday filed an appeal.
In the US on Wednesday, Wall Street ended in the red, with the Dow Jones Industrial Average down 0.6%, the S&P 500 also 0.6% lower and the Nasdaq Composite down 0.5%.
In Asia on Thursday, the Nikkei 225 index in Tokyo rose 1.7%. In China, the Shanghai Composite improved 0.7%, while the Hang Seng index in Hong Kong 1.2% higher. The S&P/ASX 200 in Sydney closed up 0.2%.
Meanwhile, US Federal Reserve officials felt that a cautious approach was prudent until greater clarity was established on government policy, minutes from the Federal Open Market Committee's May meeting on Wednesday showed.
"The FOMC minutes reveal that nearly all members are concerned that inflation could persist longer than expected, potentially forcing the Fed to maintain elevated interest rates for an extended period," commented XS.com analyst Linh Tran.
"While there was no signal of an imminent rate hike, there was also no commitment to cutting rates. A neutral stance and a wait-and-see approach were emphasized, meaning that the current high rate environment remains a key headwind for assets like gold."
Gold was quoted at USD3,268.19 an ounce early Thursday, down from USD3,296.24 on Wednesday.
German Chancellor Friedrich Merz said during a visit by President Zelensky that Berlin will help Kyiv develop new long-range weapons that can hit targets well inside Russian territory. Both countries' defence ministers later signed a memorandum of understanding for the production of long-range weapons systems, but without revealing technical details or naming the manufacturers involved.
Brent oil was trading higher at USD65.28 a barrel early Thursday against USD64.43 late Wednesday.
The OPEC+ group of oil-producing countries did not decide to increase production at an online meeting of the oil ministers involved, a statement indicated on Wednesday. Analysts expect that a core group of eight countries will decide on a strategy on Saturday.
In Thursday's corporate calendar, annual results from automotive marketplace operator Auto Trader.
In the economic calendar on Thursday, a US gross domestic product reading and the latest initial jobless claims data at 1330 BST.
By Emily Parsons, Alliance News reporter
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